Bitcoin Drops 2.3% After Trump's Speech, Whales Remain Bullish

Bitcoin's price experienced a slight decline over the past 24 hours, dipping below $84,000 despite President Donald Trump's supportive comments towards the cryptocurrency industry during a recent event. Initially, Bitcoin spiked to $86,000 following Trump's speech, which emphasized his backing for the crypto sector and suggested a long-term holding strategy for digital assets. However, the market's enthusiasm was short-lived, as Bitcoin failed to maintain its gains and retreated to $84,000.

The pullback can be attributed to several factors. Investors had already factored in most of Trump's remarks during previous rallies this month, leading to a "sell-the-news" reaction. Additionally, the absence of new policy announcements during Trump's speech may have left some market participants disappointed, as they had anticipated more concrete developments. Furthermore, geopolitical tensions and broader macroeconomic factors likely contributed to the market's cautious sentiment.

Despite the recent pullback, the long-term outlook for Bitcoin remains optimistic. On-chain data indicates a significant increase in Bitcoin whale transactions this week, aligning with expectations of a dovish Federal Reserve and decelerating inflation. This suggests that institutional demand for Bitcoin remains robust, which could provide price support in the coming trading sessions.

Technical indicators also suggest a cautiously bullish outlook for Bitcoin. The Parabolic SAR indicator is currently trending below price action, indicating underlying support. However, the declining trading volume and Average Daily Range (ADR) suggest waning momentum, increasing the risk of a pullback. If Bitcoin reclaims $86,000 and sustains bullish pressure, a breakout toward $90,000 becomes viable. Conversely, failure to hold above $84,000 could trigger a sell-off, pushing Bitcoin toward key support levels.

In summary, while Bitcoin experienced a slight pullback following Trump's pro-crypto remarks, the long-term outlook for the digital currency remains bullish. Institutional demand and on-chain data suggest that Bitcoin is unlikely to witness rapid declines in the coming trading sessions. However, the market's reaction to macroeconomic factors and liquidity conditions will likely dictate whether Bitcoin reclaims recent highs or faces a deeper correction.