Bitcoin experiences a quick pullback following Donald Trump’s signing of the U.S. Bitcoin Reserve Order. Will BTC’s price survive the sudden rise in volatility?
The fluctuation in the crypto market continues as the broader market sees a 24-hour liquidation exceeding $500 million, with $400 million accounted for by long liquidations. Bitcoin has experienced a swift downswing as a result.
Additionally, Bitcoin’s price saw an intraday pullback of 1.98%. Currently, BTC trades at $88,095, showing a lower price rejection from the 24-hour low of $84,713.
As the swift recovery signals bullish support at lower levels, can this lead to a triangle breakout rally? Let’s explore.
Bitcoin Falls as Donald Trump Signs Bitcoin Reserve Order
The recent pullback in Bitcoin came despite Donald Trump, the U.S. President, signing an executive order to establish a strategic Bitcoin reserve. The announcement led to a swift drop in Bitcoin, falling from a 24-hour high of nearly $91,000 to just under $85,000.
Bitcoin Price Chart
Since then, Bitcoin has recovered, approaching the $88,000 mark. At present, BTC is consolidating between the 78.6% and 61.8% Fibonacci retracement levels.
The price trend is nearing the bottleneck of a symmetrical triangle pattern, signaling a potential breakout rally. Supporting this bullish outlook, the MACD and signal lines have given a positive crossover.
Additionally, the daily RSI remains slightly below the 50 level, reflecting mild bullish momentum. These technical indicators suggest optimism for Bitcoin’s price movement.
Is This a $17B Reduction in Bitcoin Supply?
In an X post, David Sacks, the White House’s AI and crypto czar, disclosed that the Bitcoin reserve aims to deviate from the U.S. government’s historical Bitcoin sales. In the last ten years, it has lost over $17 billion.
Meanwhile, the U.S. government currently holds 198,109 bitcoins, worth $17.41 billion. With the implementation of the Bitcoin reserve, the market is spared from selling pressure totaling approximately $17 billion.
BlackRock Witnesses $50M Outflow, Daily Total Outflow Hits $134M
Amid declining Bitcoin prices, U.S. Bitcoin spot ETFs saw massive outflows on March 6, totaling $134.26 million. Of the 12 Bitcoin ETFs, the outflows were equally split between ETFs experiencing outflows and those with net zero flows.
BlackRock offloaded $50.5 million worth of BTC into the market, followed by Grayscale with $34.51 million and Franklin with $18.05 million. ARK and 21Shares saw outflows of $17.76 million, while VanEck and WisdomTree experienced outflows of $8.18 million and $5.19 million, respectively.
Bitcoin ETFs
Will BTC Price Cross $100k?
Short-term market movements are experiencing high volatility, similar to a “buy-the-rumor, sell-the-news” phase. The current consolidation within the triangle pattern leaves Bitcoin’s price at a crossroads.
Based on Fibonacci levels, a breakout above the overhead trendline could challenge the $106,000 supply zone. On the other hand, the crucial support remains near $81,855.
Comments (0)