Potential for a Crypto Bull Run: Key Factors to Watch

Bitcoin and various altcoins have been trading within a limited range this month, as concerns over trade dynamics and interest rates loom large.

Currently, Bitcoin (BTC) is hovering around $108,000, while other cryptocurrencies like Ethereum (ETH) and Cardano (ADA) have shown little movement. Here are four compelling reasons that suggest a bullish trend in the crypto market could still materialize this year.

Bitcoin’s Price May Be Ready for a Surge

Recent technical analysis indicates that Bitcoin is on the verge of a significant upward movement. The cryptocurrency has established a bullish flag pattern, which consists of a vertical pole followed by a descending channel.

This flag pattern aligns with the handle of a larger cup-and-handle formation. The cup’s depth is approximately 30%, hinting at a potential price target above $140,000.

In addition, the flagpole measures around 35%. If we project this distance from the breakout point at $109,300, it suggests a target exceeding $145,000. A decisive move past this threshold could ignite a wider rally across the cryptocurrency market.

Altcoins Display Promising Reversal Patterns

Many altcoins have recently formed a classic bullish double-bottom reversal pattern. This pattern emerged following a decline in April, a rebound in May, and a subsequent retest of the lows from April.

Moreover, excluding Bitcoin, Ethereum, and stablecoins, altcoins have also created a bullish falling wedge pattern, characterized by two converging trendlines that slope downward.

The upper trendline has been tested against swing highs since February 1, while the lower trendline has tracked lows since February 7. The price has recently broken above the upper boundary of this wedge, signaling the potential for further gains, possibly reaching the May high of $0.348.

Upcoming Trade Agreements Could Influence Markets

From a broader economic perspective, the United States is expected to finalize several trade agreements by the end of the month. Deals have already been established with China, Vietnam, and the U.K., with negotiations underway for an agreement with the European Union.

This week, former President Trump sent letters to various nations, reiterating that he will not extend the August 1 deadline. However, similar to past negotiations with China, these letters are perceived as a tactic to expedite agreements. A comprehensive trade deal could positively impact both equity and cryptocurrency markets.

Anticipation of Interest Rate Reductions

Another factor that could catalyze a crypto bull run is the growing expectation of interest rate cuts. Economists predict that the Federal Reserve may start easing rates as early as its September meeting, assuming inflation data continues to show improvement.

Current odds on Polymarket indicate a 50% chance of a rate cut in September, with the likelihood of two cuts increasing in recent weeks. Lower interest rates typically encourage investors to shift from bonds to riskier assets, including cryptocurrencies. Additionally, the proposed Big Beautiful Bill is expected to increase the money supply, with some of that capital likely flowing into the crypto market.

Disclaimer: This article is provided for informational purposes only and does not constitute financial advice. Readers are encouraged to conduct their own research before making any investment decisions.