Bitcoin Analysis: Bullish Momentum Returns as Price Reclaims the $90,000 Level

In today’s session, Bitcoin has experienced a significant recovery, surpassing 10% in value appreciation and reaching new levels above $90,000. This movement has been primarily driven by comments from the U.S. government, which has expressed its intention to include cryptocurrency reserves as part of its new government plan.

The Role of the United States

During yesterday’s session, President Trump stated on his Truth Social account that his next executive order will move toward the creation of a strategic cryptocurrency reserve, which will include assets such as Ripple, Solana, and Cardano, in addition to the well-known Ethereum and Bitcoin. Furthermore, the president emphasized his commitment to turning the United States into the global capital of cryptocurrencies, ensuring that his administration will foster the next level of digital asset development.

It is worth noting that Trump previously labeled the cryptocurrency market as a scam, but his stance appears to have shifted dramatically. Now, his administration’s support for the sector is clear, to the point of having promoted his own NFTs and meme coins. With this approach, the new administration is expected to be much more crypto-friendly, actively seeking clear and favorable regulations for the industry.

In this context, the White House has announced a cryptocurrency summit this Friday, where the government will meet with key executives and directors from the digital asset industry.

This series of announcements had a direct impact on market confidence, reversing multiple bearish sessions and serving as a turning point that has brought back bullish pressure on Bitcoin in the short term. However, for this optimism to be sustained, it is essential for expectations to be backed by a concrete regulatory plan, as this could maintain market confidence and buyer momentum in Bitcoin in the coming sessions.

How Is Market Confidence?

The Fear & Greed Index for cryptocurrencies is currently at 39, placing it within the "fear" territory. This marks a significant recovery, considering that just yesterday, the index registered a value of 22, approaching the "extreme fear" zone.

Source: Coinmarketcap

The recent drop in the index resulted from a loss of confidence and an increase in selling positions over the past week. However, the sharp rebound in its value suggests that market sentiment has rapidly improved.

The new values in the cryptocurrency confidence index could fuel a new bullish bias in Bitcoin, especially if the index continues rising above 40 in the coming sessions. Currently, market confidence remains highly volatile, making it crucial for the index to hold consistently at higher levels, allowing Bitcoin’s bullish pressure to strengthen further.

Bitcoin Technical Forecast

Source: StoneX, Tradingview

False Breakout: The BTC market has exhibited strong indecision since November 2024, consolidating within a sideways channel with an upper boundary at $106,000 and a lower boundary at $90,000.
In recent sessions, accelerated bearish pressure attempted to break the support level, which could have triggered a deeper downward move. However, the price has shown a strong recovery from below the $90,000 zone, and it is now attempting to reintegrate into the long-standing sideways range.

As long as there is no clear and sustained breakout from this range, it is unlikely that Bitcoin will establish a defined long-term trend.
RSI: The RSI line remains oscillating above the oversold zone (30). Its upward slope currently suggests that buying momentum is gaining strength. If the RSI crosses above the neutral 50 level, it could indicate that buying pressure has fully regained control of BTC, reinforcing its bullish bias.

Key Levels:

$106,000: Major resistance. This level remains the key area to watch, as it represents the upper boundary of the sideways channel. If Bitcoin reaches and surpasses this level, the bullish trend could reignite, reviving the expansion phase that has remained dormant for several weeks.
$90,000: Immediate barrier. This is the closest zone that could obstruct further upward movement. This level coincides with the lower boundary of the sideways channel and the 100-period simple moving average. If the price breaks above this level with strength, the sideways range could regain relevance in the short term.
$76,000: Key support. This level remains the nearest neutral zone, based on BTC’s price fluctuations over the past year. If the market revisits this level, selling pressure could intensify, increasing the chances of a more structurally bearish trend in the long term.

Written by Julian Pineda, CFA – Market Analyst

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