Bitcoin's $100k Showdown: Trump's Crypto Reserve Sparks Debate
1min read Bitcoin's recent price surge has sparked debate among investors and analysts about the cryptocurrency's next move. Following a 9.53% increase on Sunday, March 2, Bitcoin [BTC] and other major cryptocurrencies like Ethereum [ETH], Ripple [XRP], Solana [SOL], and Cardano [ADA] saw significant gains. This rally was attributed to the announcement of a new strategic crypto reserve proposed by U.S. President Donald Trump.
The market-wide sentiment was lifted slightly by this news, but it remains unclear whether this bounce could transform into an uptrend for Bitcoin. From a technical perspective, the BTC bounce has not changed the outlook on the daily timeframe. Analysts are questioning whether this was a bearish retest or the beginning of a recovery that would usher in a new uptrend.
As Bitcoin faces resistance around the $100k level, traders are wondering whether to go short. The U.S. jobs report, scheduled for March 7, could impact stocks and crypto, including Bitcoin, if it falls short of broader market expectations. The rally occurred when the price broke the range lows and established a bearish structure, raising questions about whether this was a deep deviation before moving higher or a "sell the news" event.
The Chaikin Money Flow (CMF) indicator was at +0.15, signaling heavy buying pressure, but the Awesome Oscillator remained in bearish territory. More importantly, the daily market structure was also bearish, with a lower high at $98.3 that needed to be breached to shift the structure. The 1-month liquidation heatmap highlighted the cluster of liquidity around $100k, indicating that a move to this region was highly likely, as price is drawn to dense liquidation zones.
The 1-week chart highlighted the $95.5k level as the closest price target, coinciding with the support level that Bitcoin clung to throughout February. A retest of this level could trigger a bearish reversal. While the sentiment has been intensely bearish in recent days, traders would be apprehensive of being bullish. However, Bitcoin is known for its unpredictability, and this kind of scenario is when the price rockets higher, leaving many participants sidelined.
In conclusion, the bullish scenario seemed more probable based on a qualitative assessment, 