BTC Price Action Faces Resistance
Bitcoin price action may not see any significant upside due to this initial investor disappointment, according to Bitfinex analysts, who noted:
“After initial disappointment with the announcement of the Strategic Bitcoin Reserve, we expect more rangebound trading as the US will not be making new purchases, and instead is simply introducing a plausible framework to hold seized crypto assets.”
However, the US Bitcoin reserve plan is seen by some analysts as the first “real step” in bringing Bitcoin into global finance.
“The US has taken its first real step toward integrating Bitcoin into the fabric of global finance, acknowledging its role as a foundational asset for a more stable and sound monetary system,” Unchained head of market research Joe Burnett said.
While Analysts Are Divided on Long-Term BTC Impact
Despite short-term investor disappointment, Trump’s Bitcoin reserve aspirations can prove to be a viable middle ground for experimenting with Bitcoin as a national reserve asset.
This “softer approach” is more practical and face less mainstream resistance, Bitfinex Analysts said, and added:
“This plan follows the possible realization in the White House that the creation of a fund to invest in cryptocurrencies might face strong opposition and therefore the choice of a more pragmatic and somewhat milder path towards the adoption of crypto assets.”
Meanwhile, Bitcoin remains in a strong downtrend that caused a descending triangle in the four-hour chart, a bearish pattern signaling a market downtrend.
BTC Needs $93K Retake to Break Downtrend
Bitcoin will need to reclaim the key $93,000 level in order to break this ongoing downtrend, pseudonymous crypto analyst Satoshi Flipper tweeted on March 7 in an X post.
