Trump announced a STRATEGIC CRYPTO RESERVE | Bitcoin surged significantly. What can we expect next?
The cryptocurrency market was showing signs of weakness and Trump dropped the bomb on the bears. He announced that the United States was considering adding Sol, Xrp, Ada, Bitcoin, and Ethereum to the strategic reserves.
Bitcoin and Ethereum pumped more than 10%, Sol nearly 25%, Xrp over 30%, and the biggest winner was Cardano with a move of over 70%.
Isn't it funny how a single message can move the entire cryptocurrency market? Just one message, nothing has actually been implemented yet. Well, that's the beauty of the cryptocurrency market, when it moves, it can move strongly.
This was the overview of why the cryptocurrency market exploded, our main focus in this article will be Bitcoin. We will briefly discuss the charts and see what we can expect next.
BTCUSD (Monthly)
We had a monthly close 3 days ago, so it's good to start with the monthly chart.
The monthly candle closed below an important low last month. To make it short, I think as long as we do not see a monthly close above 96.5k$, the bears can take control of this area. The monthly candle only has 3 days and many other things can happen in 27 days.
Looking at the monthly chart, I don’t see it favoring the bulls until we see a monthly close above.
BTCUSD (Weekly)
This is where everything happens. Bitcoin was around 85k$ when Trump posted his message, and before that, there was no sign that BTC was going to return to the range before the weekly close.
Let’s just discuss the chart before I share my personal opinion. How I manage and will manage this price action.
The weekly candle closed within the range and technically, there still hasn’t been a break in the structure as the price did not close below the range.
As long as it holds above 90k$, we can say the chart still looks okay.
BTCUSD (Daily)
The same goes for the daily chart. The price is now above the key area of 90k$ and as long as it stays above, the bulls can expect a continuation upward.
Enough discussing the chart, now let’s talk about how I will personally handle this overall condition.
How will I manage this situation?
We all know that this movement comes from Trump's announcements, so I don’t think the chart will help much at this stage, as the news is less than 24 hours old. We will need to give it time and see if the market will support this move or not.
I have seen countless times that Sunday night pumps fade into the new week. This week is also very important.
Agreement on tariffs from March 4
Crypto summit at the White House on March 7
Release of non-farm payroll (NFP) data on March 7, Friday.
I think this week will be much more volatile.
Here’s what I think could happen.
As I said, 90k$ is really an important area right now. If the price can hold above and starts to show strength again, it’s likely we will see a continuation upward.
For the execution of transactions
I think a break and hold above the high of 95k$ will offer a better trading opportunity as it will confirm that Trump’s pump wasn’t just a short-term move, the price is ready to move further.
And if you pay attention. The daily chart is still in a downtrend as it has not broken the low, and the last upward move goes directly towards the daily supply zone.
If it breaks below 90k$
As I said, 90k$ is an important level to watch on shorter timeframes.
If the price breaks below 90k$ and holds, I wouldn’t be surprised if the price starts to bleed slowly again and erases all of Trump’s movement.
That's all from my side, there's no need to rush, it's the first day of the week. Stay calm and observe what the market does, then act when the time comes.