$BTC Bitcoin Update: Market Volatility Amid Policy Shifts & Technical Signals

Bitcoin faces mixed signals as volatility intensifies. Following President Trump’s March 7 crypto summit, prices dipped 6% to $86,394, driven by disappointment over the administration’s “strategic Bitcoin reserve” plan, which relies solely on seized assets rather than new purchases. Analysts note the initiative’s symbolic nature, with MicroStrategy’s Michael Saylor and industry leaders urging cautious optimism.

Technically, BTC shows bearish signals: a lower time frame Head and Shoulders pattern suggests a potential drop to $83,600. Conversely, the US dollar index (DXY) fell 3%, historically a precursor to Bitcoin rallies3. Institutional inflows remain strong, with spot ETFs absorbing 51,500 BTC in January, while Trump’s pro-crypto stance continues to fuel long-term bullish sentiment.

Key levels to watch: Resistance at $94,000 and critical support near $80,083. Traders eye macroeconomic cues and ETF flows for directional clarity. Stay vigilant—volatility reigns.