Bitcoin recently approached $90,000 but must reclaim key support levels to avoid new lows. Market analysts noted the impact of U.S. tariff changes and speculations about Bitcoin purchases funded by gold reserves. Key support includes the 21-day SMA and the yearly open, which Bitcoin must uphold to maintain upward momentum.
On March 24, Bitcoin (BTC) neared the $90,000 mark as markets opened, reflecting a price of $88,772 on Bitstamp—the highest point since early March. This increase of nearly 3% showed a positive correlation with rising stocks, like the S&P 500 and Nasdaq, which were up 1.6% and 2%, respectively. Analysts noted the positive shift stemmed from the U.S. government easing certain tariffs set to take effect soon, resulting in favorable market reactions.
Rumors about the U.S. possibly leveraging its gold reserves to acquire Bitcoin added to the positive sentiment in the crypto market. Bo Hines from the President’s Council of Advisers on Digital Assets remarked on the potential strategy: “If we actually realize the gains on [these holdings], that would be a budget-neutral way to acquire more Bitcoin.” This speculation drove interest despite Bitcoin’s modest price increase.
Keith Alan from Material Indicators highlighted that, although the BTC price uptick was modest, the news of potentially selling gold reserves for Bitcoin had sparked enthusiasm among traders. He suggested that now could be a strategic time to swap gains from gold for Bitcoin amidst current market conditions.
Alan identified two critical support levels for BTC to reclaim to avoid new lows: the 21-day simple moving average (SMA) at $84,674 and the yearly open at approximately $93,300. He asserted the importance of these levels, warning that until the yearly open is reclaimed, there exists a heightened risk of Bitcoin testing lower price points again. “With conflicting signs and signals, how can we tell if Bitcoin is returning to a path to ATH territory or if this is a developing bull trap?” he pondered, emphasizing the need for clear validation levels.
Bitcoin’s price movements reflect a complex interplay of market signals and geopolitical factors. The need for Bitcoin to reclaim key support levels is paramount to avoid potential new lows. Analysts suggest monitored trading strategies based on potential shifts in U.S. policy regarding its gold reserves could play a significant role in future Bitcoin valuations, underscoring the importance of staying informed and strategic in trading moves.
Original Source: cointelegraph.com
