Bitcoin Price Surges 8% Following Strategic Crypto Reserve Announcement
Bitcoin rebounded sharply on Monday, rising approximately 8% within 24 hours, recovering from a dip below $80,000 on Friday. The broader crypto market also increased by 7% in total market capitalization.
This surge follows US President Donald Trump's announcement of five digital assets included in a proposed US strategic crypto reserve: Bitcoin, Ethereum, XRP, Solana, and Cardano. He emphasized that Bitcoin and Ethereum would be the core assets, leading to BTC spiking past $94,000 before slightly retracing.
Market Insights
- Analyst Ali Martinez indicated that the current negative funding rate of -0.001 across exchanges could signal a strong upward movement for Bitcoin.
- Martinez noted that Bitcoin has underperformed compared to the global liquidity cycle since July 2024, suggesting potential price catch-up.
- Bitcoin’s market capitalization is now $1.83 trillion, marking a 7.5% increase over the past day.
- The upcoming White House Crypto Summit on March 7 will address regulatory policies and stablecoin oversight.
Price Analysis
Currently, Bitcoin is trading around $92,400. A potential bullish crossover on the MACD indicator may indicate an impending trend reversal, with targets above $95,000 and a retest of recent highs near $100,000.
- The RSI has rebounded from oversold levels, indicating improving buying momentum.
- A rejection at the 50 level may lead to further consolidation between $90,000 and $92,500.
- Immediate resistance is at the middle Bollinger Band ($93,375) while the upper band near $103,000 represents the next bullish target.
Geoff Kendrick from Standard Chartered maintains a long-term price target of $500,000 for Bitcoin by the end of President Trump’s term.