- Trump’s executive order on Bitcoin reserves could solidify crypto’s role in US economic policy.
- Bitcoin's breakout potential hinges on key technical levels, with traders watching closely for signs of momentum.
- The US’s crypto strategy may drive innovation but also invite geopolitical risks, reshaping global trade dynamics
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In a move that has stirred both excitement and uncertainty in the crypto world, US President Donald Trump has signaled a bold push for the country to become a global hub for artificial intelligence and cryptocurrency.
Speaking via video conference at Davos, Trump introduced an executive order aimed at creating a crypto working group, led by David Sacks, former PayPal COO and a vocal crypto advocate.
The group's primary focus will be on potentially including Bitcoin in the US’s national strategic reserves—an idea that could transform the crypto landscape in a major way.
The announcement has already sparked significant reactions within the market. If successful, the creation of a Bitcoin reserve could bring about monumental changes for the industry, cementing cryptocurrency’s place in the US alongside traditional commodity reserves.
It could also reduce the risk of the US unloading its sizable Bitcoin holdings, providing relief to Bitcoin markets that have long feared significant selling pressure.
A Game-Changer for Bitcoin?
The market has responded positively to Trump's reaffirmation of his crypto-friendly stance, with Bitcoin’s volatility spiking in the wake of the news.
After finding support around $101,000, Bitcoin surged 5% toward $106,000 before pulling back slightly to $103,000. Despite some hesitation, the overall trend remains bullish, with traders keeping an eye on key levels for further momentum.
Meanwhile, the altcoin market has lagged behind Bitcoin’s strong performance. With the US focused on building its Bitcoin reserve, the flow of funds into the crypto space has been predominantly Bitcoin-heavy.
However, Ethereum has posted a nearly 7% rise to the $3,400 range in the last 24 hours, suggesting a potential positive divergence for the leading altcoin.
Trump’s focus on crypto signals a potentially pivotal shift for the US. His administration’s actions could tighten the crypto sector's dependence on US policies, which might become a double-edged sword.
While the move positions the US as a leader in the global crypto market, it could also invite pushback from other developed nations, leading to a possible clash over cryptocurrency in future trade discussions.
As the sector aligns more closely with US political and economic policies, it could spark new challenges, including the risk of cryptocurrencies being pulled into global trade tensions.
Bitcoin’s Road Ahead: Key Levels to Watch
Bitcoin's impressive rally this month has seen it rise from $92,000 to a fresh high of $109,300. However, after reaching this peak, Bitcoin has been consolidating between $103,000 and $105,000. As the digital asset trades within the upper band of its long-term rising channel, it faces key support and resistance levels that will guide its next move.
In the short term, the $102,400-$103,300 range is a critical support level. If Bitcoin holds above this zone during any pullbacks, it could be poised for stronger upward movements. On the upside, the $108,200 level—near the recent peak—remains a key resistance point, and a breakout above this level could signal further gains.
Technical View
Looking at Bitcoin’s chart, a triangle pattern has emerged on the daily chart, which could lead to a strong price move in either direction. A breakout above the triangle would likely push Bitcoin toward the $108,000 mark, with volume closely monitored to gauge the strength of the move. Should Bitcoin break lower, the $102,400 support level will be crucial for maintaining the bullish momentum.
In a bullish scenario, Bitcoin could rally toward the $115,000-$121,000 range, supported by Fibonacci levels. However, if selling pressure builds at the peak, we could see a correction back toward $100,500, potentially dipping further to the $95,000-$99,000 range.
As the market watches these critical levels, Trump’s efforts to solidify the US’s position as a crypto powerhouse continue to fuel optimism—though the path ahead remains uncertain.
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Disclaimer: This article is written for informational purposes only. It is not intended to encourage the purchase of assets in any way, nor does it constitute a solicitation, offer, recommendation or suggestion to invest. I would like to remind you that all assets are evaluated from multiple perspectives and are highly risky, so any investment decision and the associated risk belongs to the investor. We also do not provide any investment advisory services.