The market reacts with skepticism to Trump's plan, while the dollar weakens due to mixed US labor data
The price of Bitcoin (BTC) fell 3.48% on Friday, closing at $86,801, despite President Donald Trump's announcement about the creation of a strategic Bitcoin reserve. Investors ignored negative data for the dollar, such as rising unemployment in the US and non-farm payroll figures below expectations. Why was the market not enthusiastic about Trump's plan?
Bitcoin tested the support at the 200-period exponential moving average (EMA 200), located at $85,800, maintaining a long-term bullish sentiment. / Tradingview
Trump's announcement: Bitcoin reserve without public funds
Trump signed an executive order to create a Bitcoin reserve using 200,000 BTC already in the possession of the federal government, obtained through criminal and civil forfeitures. He clarified that no public funds or funds from the federal budget will be used to acquire more BTC.
However, the market received the announcement with skepticism, especially since Trump also included altcoins in a separate digital asset pool. Bitcoin maximalists are not happy with this decision, which created distrust in the market.
Jobs data weakens the dollar, but does not save Bitcoin
The US employment data showed an increase in unemployment to 4.1% (above 4% expected) and 151,000 new non-farm jobs (below 160,000 expected). Although this data weakened the dollar, it was not enough to support the price of Bitcoin, which reached a high of $91,283 before falling.
What's next for Bitcoin?
Dynamic support: Bitcoin tested the support at the 200-period exponential moving average (EMA 200), located at $85,800, maintaining a long-term bullish sentiment.
Oversold: The BBP indicator suggests that Bitcoin is in an oversold zone, which could signal a bounce in the coming days.
Key Resistance: If the price rebounds, it could face resistance at the 50 EMA, located at $94,000.
Buying opportunity or further declines?
Although Trump's announcement failed to boost Bitcoin, technical fundamentals suggest that the cryptocurrency could be preparing for a bounce. Investors will need to keep an eye on market movements and upcoming actions by the US government regarding cryptocurrencies.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are volatile and involve risk. Please do your research before investing.
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