Bitcoin (BTC) traders are optimistic about prices reaching $70,000 in the near term, buoyed by positive sentiment in the broader crypto sector ahead of the U.S. elections and the easing of selling pressure from key wallets.

“The rebound in Bitcoin price indicates a more optimistic market outlook in the near-term macro environment,” remarked Lucy Hu, senior analyst at Metalpha, in a recent statement to CoinDesk. “The market was heartened by Trump’s vice president selection, suggesting a more crypto-friendly administration and policies.”

“BTC could oscillate around the 120-day moving average, with the potential to ascend to $68k or even $70k. However, continuous monitoring of Federal Reserve policies and the implications of Mt. Gox repayments is necessary,” Hu added.

A moving average is a technical indicator that aggregates price data over time to ascertain a trend’s direction. The 120-day moving average is widely regarded as a long-term indicator.

Bitcoin has experienced volatile price movements in recent weeks, plummeting to $53,500 in early July as wallets from the defunct exchange Mt. Gox began their bitcoin repayments, sparking bearish forecasts.

Nevertheless, favorable developments have rejuvenated the bulls. Wallets linked to the German state of Saxony have liquidated their entire bitcoin holdings. Concurrently, Donald Trump’s pro-crypto stance as a Republican candidate has rekindled market optimism.

Trump has selected Ohio Senator JD Vance, a known crypto advocate, as his 2024 running mate. In 2022, Vance possessed up to $250,000 worth of BTC.

Read more: Trump Advocates for Bitcoin to Be ‘Forged in America’

“A shift in perspective towards the digital assets industry in the U.S. is fostering expectations of more favorable policies for Bitcoin and crypto, as the elections aim to attract single-issue voters and special interest groups,” commented Nick Ruck, head of growth at BitU Protocol, in a Telegram message.

“There is also a diminished expectation of sell pressure in the long term as Mt. Gox distributes funds to creditors,” Ruck added.

The odds of Trump winning the 2024 elections have surged to 69% from 60% in the past week, according to data from the betting platform Polymarket.