$BTC The recent announcement by Donald Trump to create a strategic crypto reserve has sent Bitcoin's price surging by 10%.¹ This reserve will initially include Bitcoin, Solana, Ripple, and Cardano, diversifying the US digital asset holdings.

Despite the initial excitement, Bitcoin's price dropped to $85,000 before recovering to $88,000, as traders were disappointed that the reserve would only use existing government-owned Bitcoin rather than making new purchases.² However, Bitcoin quickly found support at lower levels and recovered from its 24-hour low of $84,713 to trade around $88,095.

*Technical Analysis*

Bitcoin's price action leans bearish despite Trump's announcement, with the price trading below the $91,500 resistance area.³ The daily time frame does not confirm the trend's direction, and either a breakout above the $91,500 area and the resistance trend line or a strong rejection is needed to confirm what will happen next.

*Market Indicators*

The Relative Strength Index (RSI) is at 50, while the Moving Average Convergence/Divergence (MACD) struggles to make a bullish cross. The MACD indicator has crossed bullishly, with the blue MACD line breaking above the signal line, signaling a shift in momentum.

*Price Forecast*

If Bitcoin holds above $88,000, a breakout past $100,000 is likely, driven by institutional demand. However, a bearish scenario could emerge if Bitcoin fails to close above $88,000, triggering a new wave of liquidations.