Bitcoin (BTC) has seen volatile price action recently, dropping below $82,000 following the US government’s announcement of the Bitcoin Strategic Reserve. Despite the short-term decline, BTC remains in a long-term bullish trend, with institutional acceptance and macroeconomic factors fueling optimism.
One of the most important fundamental catalysts is President Donald Trump’s executive order to create a Bitcoin reserve using seized digital assets in lieu of direct government purchases. While the market reacted with a short-term correction, the move solidified BTC’s role as a recognized sovereign asset class. Additionally, El Salvador’s Bitcoin reserves have grown to $603 million, reinforcing BTC’s potential as a long-term store of value.
On the institutional side, Bitcoin ETFs continue to see strong inflows, adding liquidity to the market and reducing downside risk. With BTC adoption growing among hedge funds, corporations, and sovereign entities, the stage is set for a potential continuation of the bullish trend.
From a technical perspective, Bitcoin has formed a golden cross pattern, a classic indicator of bullishness. This occurs when the short-term moving average crosses above the long-term moving average, indicating a change in sentiment from bearish to bullish. The latest moving averages on the 1-month chart confirm this formation:
With both 50-day moving averages moving well above the 100-day average, this crossover suggests that Bitcoin is entering a strong bullish phase, which historically results in extended price rallies.
Additional indicators support this view. The Relative Strength Index (RSI) is at 34 which suggests that Bitcoin is close to oversold conditions. A bounce above 40 could encourage fresh buying. At the same time, a low Stochastic %K reading at 32 suggests that BTC is getting closer to a potential trend reversal, further strengthening the buying opportunity.
Despite the recent correction, BTC's technical structure remains bullish, with the golden cross acting as a key support level. The immediate resistance area is $82,000-$85,000. A move above this level could trigger a strong rally to new highs, potentially exceeding $90,000 in the coming weeks.
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