Bitcoin prospects bright amid falls like Humpty Dumpty

President Trump’s executive order on the U.S. Strategic Bitcoin Reserve surprisingly caused a steep decline in Bitcoin.

This was because there was no clear explanation of how the U.S. Bitcoin reserve would be financed.

Bitcoin candlesticks have shown bullish underlying currents at multi-month lows, giving cryptocurrency bulls hope. Market actions showed Bitcoin’s decline stopped at the 200-day simple moving average support level.

The influx of funds into ETFs and developments on the Bitcoin Act from Senator Cynthia Lummis might outweigh the risks posed by tariffs and recession, potentially pushing Bitcoin beyond its record high of $109,354.
Conversely, opposition to the Bitcoin Act, an escalation in the trade war, or a more hawkish stance from the Federal Reserve could pull Bitcoin down below $80,000.

Bitcoin’s next support is located at $78,200. A further decline toward the $75,000 region could result in short sellers taking greater control of the market.

CryptoQuant described the market’s recent events as a “Trump-n-Dump.” After a rally sparked by an announcement about a U.S. Strategic Crypto Reserve, traders sold their digital assets in large quantities.

Bitcoin, Ethereum, SOL, XRP, and ADA are currently declining by at least 3% daily, according to CoinMarketCap data. Curiously, these cryptocurrencies saw more significant declines on March 6 following Trump’s signing of an executive order creating a Digital Asset Stockpile and a Bitcoin Reserve in the world’s largest economy.

Reserves made up of crypto assets forfeited in criminal or civil proceedings. The U.S. government will not sell its cryptocurrency holdings or buy any more assets than those seized through forfeiture procedures.

Nevertheless, CryptoQuant maintains that despite U.S. economic decisions, increased demand is necessary for Bitcoin to see a sustained price increase.