Bearish view
- Sell the BTC/USD pair and set a take-profit at 80,000.
- Add a stop-loss at 96,000.
- Timeline: 1-2 days.
Bullish view
- Buy the BTC/USD pair and set a take-profit at 96,000.
- Add a stop-loss at 80,000.
The BTC/USD pair retreated, erasing the gains made earlier this week when Donald Trump revealed his strategic crypto reserves strategy. Bitcoin price retreated to 85,000, down from this week’s high of near 95,000.
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Bitcoin falls as Strategic Bitcoin Reserves concerns remain
The BTC/USD pair retreated, a day after Donald Trump announced plans for the Strategic Bitcoin Reserve. He has proposed creating a reserve that will have top coins like Bitcoin, Ethereum, Cardano, and Ripple (XRP).
Such a move would be bullish for the crypto industry because it would increase demand for Bitcoin and other altcoins. It would also push other countries to start embracing cryptocurrencies as they did with Bitcoin.
However, the BTC/USD pair retreated as concerns about how those reserves will work and whether they will lead to more demand. For one, Trump may suggest the US to convert the coins it holds into reserves, meaning that no new coins will be bought.
Further, Trump cannot create a strategic crypto reserve with executive order. He will need congressional approval to do that, and there is a likelihood that this will not happen given the thin margins in Congress.
The BTC/USD pair wavered ahead of the upcoming crypto summit in the United States. This summit will have the top executives in the crypto industry meet and deliberate on the future.
The summit came a few days as the Securities and Exchange Commission (SEC) announced the decision to end numerous lawsuits against top companies like Uniswap, Coinbase, Gemini, and OpenSea. The agency wants to have a more collaborative approach with the crypto industry going forward. This is unlike under Gary Gensler who prioritized lawsuits.
BTC/USD technical analysis
The daily chart shows that the BTC/USD pair bottomed at 78,000 last week and then quickly bounced back. It rose above the Woodie pivot point level at 87,400 and the first support of the Andrew’s pitchfork tool.
The pair remains at the neckline of the double-top pattern at 108,000. Also, the Percentage Price Oscillator (PPO) and the Money Flow Index (MFI) have remained under pressure in the past few weeks.
The BTC/USD pair will likely continue fallinf ahead of Trump crypto summit. This trend may continue as bears target the next key support point at 80,000. A move above the resistance at 90,000,000 will invalidate the bearish outlook.
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