- Bitcoin closed in the yellow zone, signaling resilience despite recent volatility.
- Trump’s Bitcoin reserve plan won’t involve new purchases, dampening market excitement.
- A crypto summit today could influence sentiment and determine Bitcoin’s next move.
Bitcoin—BTC, dropped into the orange zone but closed the weekly candle in the yellow zone. That move shows strength despite recent selling. The price fell to $85,000 overnight before recovering to $88,000. Over the past 24 hours, Bitcoin has lost more than 3%. Earlier this week, the digital asset climbed past $90,000, hinting at a possible recovery. But selling pressure returned, keeping traders uncertain. A major policy shift regarding Bitcoin reserves has added to market tension.
Bitcoin Holds Key Levels Despite Market Uncertainty
President Donald Trump signed an executive order to create a strategic Bitcoin reserve. The announcement initially looked bullish, but a key detail changed the reaction. The government will not buy new Bitcoin. Instead, the reserve will use forfeited assets from criminal and civil cases. White House crypto czar David Sacks confirmed that taxpayers would not fund this initiative.
Markets expected fresh demand from new government purchases. That expectation fueled optimism before reality set in. Deutsche Bank strategist Jim Reid noted that the stockpile relies on existing assets, not new funding. With no additional capital flowing in, excitement faded. The market responded with a fresh wave of selling.
Will Bitcoin Rebound?
Despite the pullback, Bitcoin’s market structure remains intact. Closing in the yellow zone signals buyers stepping in at key levels. If that pattern holds, momentum could shift upward soon. The next move depends on market sentiment. A major crypto summit later today could influence direction.
Pro-crypto announcements may boost confidence and drive prices higher. Bitcoin has shown remarkable resilience in past downturns. A push back above $90,000 could restore confidence. Another drop into the orange zone might trigger more selling. The next few days will reveal Bitcoin’s short-term path.
