Bitcoin slides below $90K: Buying opportunity or warning sign?

Bitcoin and other major cryptocurrencies surged over the weekend  after President Donald Trump reaffirmed his commitment to the U.S. Crypto Strategic Reserve, boosting Ethereum (ETH), XRP, Dogecoin (DOGE), Solana (SOL), and Cardano (ADA). However, Bitcoin has since retreated to around $83,720, raising questions about the sustainability of the rally.

Trump’s crypto bombshell

Trump announced that his administration is pushing forward with a U.S. Crypto Reserve, aimed at strengthening the industry after previous regulatory crackdowns. He confirmed that Bitcoin (BTC) and Ethereum (ETH) would be central to the reserve, alongside XRP, Solana, and Cardano. This marked a shift in U.S. policy, fueling speculation that the government might adopt a more crypto-friendly stance.

Despite briefly surpassing $94,000, Bitcoin has since pulled back, reflecting ongoing volatility. Market uncertainty has been fueled by concerns over Trump’s trade policies, with impending tariffs on Canada, Mexico, and China sparking fears of a global trade war. This broader economic uncertainty has impacted investor sentiment across risk assets, including cryptocurrencies.

The market is still also shaky due to the crypto contagion that was caused by the $1.5 billion hack of the Bybit exchange last week. Since Trump’s return to the White House, the SEC has pulled back from investigations into major crypto firms and dropped its lawsuit against Coinbase. While these moves have been welcomed by the industry, uncertainty remains over whether the administration will follow through with concrete policies to support crypto adoption.

Is this a pull-back buy?

As Bitcoin dips, some analysts view the dip as a potential buying opportunity. Market expert Ali Martinez pointed out that funding rates across exchanges have dipped into negative territory, a signal that historically precedes a price rebound. This suggests that traders may soon see renewed upside momentum.

Source: Cryptoquant

Technical outlook: Buy the dip?

With Bitcoin retreating from recent highs, the market is at a crossroads. Some see the current pullback as a natural consolidation before another push higher, while others remain cautious amid ongoing regulatory and macroeconomic uncertainties. At the time of writing, Bitcoin is dipping around the 83,720 price level.

Sell pressure is evident after the weekend’s rebound, as prices remain below the moving average. However, RSI dipping at 38 also adds to the bearish narrative. Key levels to watch on the upside are the $94,308 and $86,775 resistance levels. On the downside, the levels to watch will be $82,220.

Source: Deriv MT5