Bitcoin Faces Weekly Close Below $82K Amid US BTC Reserve Disappointment
Bitcoin could see increased volatility if it closes the week below the critical $82,000 support level, following investor disappointment over the US Strategic Bitcoin Reserve plan.
Trump’s Bitcoin Reserve Plan Fails to Meet Market Hopes
On March 7, President Donald Trump signed an executive order to establish a Bitcoin reserve using cryptocurrency forfeited from government criminal cases rather than directly purchasing Bitcoin from the market.
This decision led to short-term negative market sentiment. Analysts at Bitfinex noted that the absence of direct federal Bitcoin accumulation “led to a decline in Bitcoin’s price.” They added:
“Investors had anticipated that federal accumulation of Bitcoin would signal strong institutional support, potentially driving prices higher. However, the reliance on existing holdings without additional investments has tempered these expectations.”
Bitcoin Lacks Momentum, Struggles to Stay Above $82K
Bitcoin has struggled to gain price momentum, failing to break above the $90,000 psychological level since March 7, when Trump hosted the first White House Crypto Summit.
A weekly close above $82,000 could signal improving investor sentiment as the market digests Trump’s Bitcoin reserve strategy, which may still include “budget-neutral strategies” to increase Bitcoin holdings.
Macroeconomic Pressures Weigh on Bitcoin Price
Beyond US Bitcoin policies, macroeconomic factors also impact Bitcoin’s price. According to Iliya Kalchev, dispatch analyst at Nexo, Bitcoin’s short-term movements will be heavily influenced by upcoming US economic events:
“Next week, all eyes will turn to key US economic events, including the Consumer Price Index, which is expected to signal a slowdown in inflation, and the job openings report, which will serve as a key indicator of labor market strength and the potential for interest rate cuts.”
Bitcoin Faces $1.13B Liquidation Risk
If Bitcoin closes below $82,000, it risks triggering over $1.13 billion in leveraged long liquidations across all exchanges, according to CoinGlass data. This could introduce significant volatility in the crypto market.
However, Bitcoin may be nearing a local bottom. The daily relative strength index (RSI) stood at 28, signaling oversold conditions. Popular crypto analyst Rekt Capital noted:
“Each time Bitcoin’s RSI reached 28 during this cycle, its price either bottomed or was between -2% to -8% away from a bottom.”
With Bitcoin at a crucial support level, the coming days will determine whether it rebounds or sees further downside volatility.
