Trump Pushes Crypto Strategic Reserve

The world's leading cryptocurrency closed the week at $94,270, following a strong 9.53% rally on Sunday, boosted by Trump's announcement of the crypto strategic reserve.

Bitcoin experienced a highly volatile week, with an initial 2.07% drop taking it to lows of $78,258, but it closed at $94,270 thanks to a 9.53% rally on Sunday. This boost came after President Donald Trump ordered to move forward on a crypto strategic reserve that would include not only bitcoin, but also alternative cryptocurrencies such as Solana (SOL), Ripple (XRP) and Cardano (ADA). In addition, open interest in bitcoin futures increased by 7.55%, reaching $55.17 billion, the highest level in four days.

On the weekly chart, Bitcoin tested a key dynamic support at the 50-week moving average (EMA50), where a bounce occurred. / Tradingview

Bitcoin Finds Support at EMA50 and Forms Hammer Candle

On the weekly chart, Bitcoin tested a key dynamic support at the 50-week moving average (EMA50), where a bounce occurred. The formation of a hammer candle with a high trading volume suggests a strong rejection of low prices, indicating a possible bullish reversal.

Hammer Candle: Reversal pattern showing that buyers are gaining strength.

EMA50, EMA100 and EMA200: The bullish setup of these moving averages reinforces the positive long-term trend.

Crypto Strategic Reserve: A Game Changer?

Trump's announcement on the creation of a crypto strategic reserve generated optimism in the market. This reserve would include:

Bitcoin (BTC)

Ethereum (ETH)

Solana (SOL)

Ripple (XRP)

Cardano (ADA)

This move not only reinforces the legitimacy of cryptocurrencies, but could also boost their institutional adoption.

Increased open interest (OI) and capital inflows

Open Interest in Futures: Increased 7.55% in 24 hours, reaching USD 55.17 billion, indicating renewed investor interest.

Capital Flow in ETFs: After two weeks of outflows, bitcoin ETFs recorded an inflow of USD 94.30 million last Friday. While the spot market received USD 832.90 million in purchases in the last 24 hours.

The start of a new rally?

With technical support from the EMA50, the formation of a hammer candle and the momentum generated by Trump's announcement, Bitcoin seems poised for a new rally. However, investors should watch for confirmation of the uptrend and manage risk in a still volatile market.

Disclaimer: The information provided in this article is for informational purposes only and does not constitute financial advice. Cryptocurrencies are highly volatile; please do your own research before investing.