Bitcoin slightly retreated today after rising on optimistic expectations surrounding Trump's 401K plan.
Yesterday, the market was buoyed by news that Trump plans to sign an executive order allowing cryptocurrencies like Bitcoin (BTC) to be included in 401K retirement plans, leading futures prices to rise by about 3%. For a long time, the inclusion of cryptocurrencies in retirement portfolios has been seen as a significant positive for the market—currently, the 401K retirement fund pool is approximately $9 trillion, and if this plan is approved and triggers a capital inflow, Bitcoin prices could significantly surge.
The surge in institutional demand has been the core driving force behind Bitcoin's rise this year. Since the BTC ETF was launched in February, its total inflow recently reached a historic high of nearly $15 billion, making Bitcoin one of the most popular ETF asset classes. In recent months, the high-profile accumulation by large funds and companies has further strengthened bullish sentiment, particularly the continued purchases by the strategic fund owned by Michael Saylor, which is now the largest holder of Bitcoin globally. Against this backdrop, BTC seems poised for a new breakthrough in the short term, especially if Trump indeed signs this much-anticipated executive order, paving the way for a new surge in cryptocurrency demand.
From a technical perspective, BTC's sell-off found new support at the low point of the bull market channel, and the price is rising again, with $121,500 being a key resistance level to watch. If the bulls can return to this level, attention will turn to higher Fibonacci extension targets of $136,395. However, it is important to note that momentum indicators have shown some bearish divergence, and the price is currently operating within a descending wedge pattern, suggesting there may be a risk of reversal. In the long term, as long as the price remains above $108,855, the bullish outlook will still be maintained.
