The recently formed political party, America Party led by Elon Musk, will support Bitcoin. This was announced by the Tesla CEO himself on social media. "Fiat is hopeless, so yes, we are focusing on cryptocurrency," Musk said in response to a question about whether his new political party would adopt Bitcoin.

This statement has undoubtedly sparked a wave of enthusiasm within the crypto community. Musk, known for his love of digital assets and market influence, has effectively declared political support for Bitcoin. This move could have far-reaching implications both for the cryptocurrency itself and for the political landscape in general. After all, support for Bitcoin by a political party is not just an endorsement of the technology; it is a declaration of intent to integrate digital assets into the country's political and economic framework. This could include the development of legislation favorable to cryptocurrencies—a field currently actively pursued by various politicians in the US—as well as lobbying for the crypto industry's interests and promoting the use of Bitcoin as a means of payment.

Recall that Musk announced the creation of the America Party last Saturday after exploring the idea through a poll. The new party intends to challenge the two-party system of Republicans and Democrats. "When it comes to bankrupting our country through waste and bribery, it's obvious we do not live in a democracy," Musk wrote in his post on X last Saturday. "Today the new America Party is established to return your freedom."

The launch of the America Party followed a widely publicized dispute between Elon Musk and former close ally Donald Trump over the "Big, Beautiful Bill" worth $3.4 trillion, a spending package that Musk criticized for significantly increasing the US deficit. Trump's bill was signed last Friday.

Meanwhile, Trump stated in a post on Truth Social that Musk "has completely lost it," adding that a third political party has never succeeded in US history. The America Party has already created its official website, and many billionaires have expressed interest in the new party. The America Party is not yet officially registered with the Federal Election Commission, and Musk has yet to present a detailed roadmap.

Trading recommendations

Regarding Bitcoin's technical outlook, buyers are currently targeting a return to the $108,800 level, which opens a direct path to $109,400. From there, it's a short step to $110,100. The furthest target is the maximum around $110,800; breaking this level would signify the strengthening of the bull market. If Bitcoin goes down, buyers are expected at the $108,200 level. Returning below this area could quickly push BTC down to around $107,600, with the furthest target at $107,000.

As for Ethereum's technical picture, a clear consolidation above $2,590 opens a direct path to $2,621. The furthest target is the high around $2,646; overcoming this would mean a return of buyer interest. In case ETH drops, buyers are expected at the $2,558 level. Falling below this could quickly push ETH down to about $2,528, with the furthest target at $2,498.

Chart details:

• Red levels indicate support and resistance levels where either a slowdown or active price growth is expected instantly.
• Green indicates the 50-day moving average.
• Blue indicates the 100-day moving average.
• Light green indicates the 200-day moving average.

Crossing or testing these moving averages by price usually either halts or sets the market's momentum.