High-Stakes White House Crypto Summit Sends Bitcoin Flying

BTC confirms a bullish breakout after clearing the long-term trend line and 200-day MA.

On Wednesday, Bitcoin came just a few dollars short of $70,000, and the market saw $3.34 billion worth of liquidations, out of which $3.07 billion were shorts. On Thursday, it breached the $73,000 level, and on early Friday, it moved past $75,000, showing massive momentum and bullish pressure.

The rally was sparked by a US Treasury announcement that it will double the planned buybacks of government bonds. The dollar soon weakened, and appetite for risk-on assets surged. However, the bulk of the move was generated by the White House crypto meeting on Wednesday.

President Donald Trump met with major figures from the crypto space, traditional finance, and regulators, with crypto reform as the main focus of the summit. Crypto participants included Coinbase CEO Brian Armstrong, Ripple CEO Brad Garlinghouse, as well as representatives from Chainlink, Kraken, and Gemini.

The regulator’s side was represented by Paul Atkins, Chairman of the Securities and Exchange Commission (SEC), and Mike Selig, Chairman of the Commodity Futures Trading Commission (CFTC). Traditional finance attendees included Jeffrey Sprecher, Chairman of the New York Stock Exchange (NYSE), and representatives from Nasdaq and CME Group.

During the meeting, Trump reiterated the need for the Clarity Act to pass, saying that “It’s a very, very powerful structured legislation which will keep us ahead of China, keep us ahead of everyone else.” The bill is set for a Senate vote in mid-September, but the 60 votes it needs are not yet guaranteed. The President also mentioned a crypto reserve, saying the US is taking into consideration buying “sizable” amounts of Bitcoin and other digital coins.

The 24 hours that followed the meeting were bleak for the bears. Bitcoin jumped from roughly $64,000 to $73,000, wiping out more than $3 billion in shorts in the process, according to data from Coinglass.

Chart Analysis – BTC/USD

The bullish move sent Bitcoin through several resistance zones, and it looks like we are dealing with a true breakout. The long-term trend line drawn from the All-Time High (ATH) is finally broken with momentum, and so are the three moving averages.

In the process, BTC also moved above the double top at $67,000 and breached the upper ceiling of the $65K – $71K range. Currently trading at $75K, Bitcoin is approaching resistance at $77K and a more important level at $82K.

The RSI is deep in overbought territory, but this is normal after such a strong move. However, it should be noted that on the Weekly chart it is not even close to overbought, and bullish divergence was present before the move. After the initial frenzy settles down, we can expect to see some pullbacks, but the bulls will stay in control as long as notable support remains intact.