Bitcoin outlook: Sentiment improves as Trump names cryptos in strategic reserve

BTC/USD

Bitcoin price eased in early Monday after surging over 10% over the weekend, as the crypto market exploded on latest comments from President Trump that five digital assets will be included in US strategic reserves, with bitcoin to be in the hearth of reserve.

Long awaited signals about crypto market from President Trump provided relief as traders’ optimism started to fade that resulted in significant drop in Bitcoin price last week (fell to the lowest in almost four months below 80K).

Partial profit taking following weekend’s surge deflates the price on Monday, but revived positive sentiment suggests that dips would be limited and mark positioning for further upside.

Market focus turns towards a cryptocurrency summit which will be held in the White House on March 7 and expected to further boost positive sentiment.

Strong bullish signals have developed on daily chart after Friday’s strong downside rejection which left long-tailed Doji candle and formation of bear-trap pattern under 200DMA and 50% retracement of $52563/$109582 (at $81000 zone), as well as formation of reversal pattern after weekend’s rally retraced over 50% of pullback from new record high.

Also, weekly close above 90K signals a false break below key support zone and keeps the price within larger consolidation range.

However, more action at the upside will be needed to signal that recent weakness (which warned about possible reversal) is over.

Near term action needs to stabilize above $90K, with close above cracked $93849 barrier (50% retracement of $109582/$78115) as minimum requirement to revive near-term bulls and keep focus shifted to the upside.

Res: 93849; 85022; 97562; 99545.

Sup: 91054; 90000; 89166; 87801.