Bitcoin Skyrockets $10,000 in Epic Surge as Trump talks Crypto Strategic Reserve

Crypto Daily - On Sunday President Trump announced on Truth Social that he had directed a working group to move ahead with a Crypto Strategic Reserve. On the announcement, the crypto market took off. Bitcoin rose 10.6% on the news, although it is 3% down early on Monday.

Trump announcement kickstarts potential $BTC trend reversal

Bitcoin really needed something to ignite the spark that would send it up and out of the downtrend it is still currently within. President Donald Trump announced on Sunday, on his Truth Social account, that “a U.S. Crypto Reserve will elevate this critical industry”, and that he has “directed a Presidential Working Group to move forward on a Crypto Strategic Reserve”. This had the effect of kickstarting Bitcoin’s first big impulse upwards, which could lead to the downtrend finally being broken.

Other cryptocurrencies were in this announcement - namely, $XRP, $SOL, and $ADA. However, the big institutional money will no doubt be watching $BTC the closest.

Short-term correction playing out

Source: TradingView

The 8-hour chart for $BTC shows how the price rose further out of the recent depressed price action, which had taken $BTC as low as $78,300. With many investors perhaps expecting a final descent to around $73,000, the Trump announcement came at an opportune time.

Currently, the price is just below the major ascending trendline once again. Holding above this will be key. That said, it would be no surprise if the price did fall further back down after such a huge surge on Sunday. The Fibonacci levels for this latest move are in the chart above. Market sentiment over the next few days will decide how much, if any, the price does correct over this short term time frame.

The next job for the bulls will be to try and protect these gains, and with shorter term Stochastic RSIs generally signalling an overbought state, this is not going to be easy.

The U.S. stock market opens later, and this is also likely to have an effect on Bitcoin. The S&P 500 was bought back up into its long-running ascending channel by the bulls. If the price is able to consolidate back inside this channel once again, this will make things a lot more straightforward for the Bitcoin bulls.

Huge hammer candle rejuvenates the bull case

Source: TradingView

The weekly chart for Bitcoin shows a very interesting picture. From the bears’ perspective, yet another rejection from the descending wedge is allied with the fact that the current weekly candle is still being pushed below the major ascending trendline.

However, for the bulls, last week’s close printed the most incredible looking hammer candle. The wick below the small body is of an exceptional length, signalling that significant buying interest came in at these lower, perhaps bargain prices.

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A correction may still need to take place, in order for the market to absorb the huge 10% surge to the upside, but any more crumbs from the Trump table as regards a U.S. Crypto Strategic Reserve, is only likely to increase market sentiment to the upside.

Near the bottom of the chart, the RSI is showing a continued descent which mirrors the downtrend. The indicator line must break this in order for a reversal into an uptrend to take place.

At the foot of the chart, the Stochastic RSI is signalling that price momentum is right at the very bottom. This could traverse sideways and chop up and down for weeks or months, but if the price starts accelerating and the indicator lines get above the 20.00 level, this could signal much higher prices and a resumption of the bull market.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

This content was originally published on Crypto Daily