Bitcoin Surges Past $90K After Trump's Crypto Reserve Announcement

Bitcoin, the world's leading cryptocurrency, has experienced a remarkable turnaround in its price trajectory, reclaiming its position above $90,000 after a week of notable crashes. This bullish momentum was sparked by a significant event: the announcement of a US crypto strategic reserve by President Donald Trump over the weekend. This development could potentially signal the beginning of an extended rally for Bitcoin and other cryptocurrencies.

Veteran financial analyst Peter Brandt has identified six key reasons why Bitcoin has flipped bullish. These reasons are rooted in a series of technical developments that have unfolded over the past week. Brandt, renowned for his deep technical expertise, took to social media to outline these observations.

Firstly, Bitcoin's recent 30% correction has been a crucial factor in its bullish turnaround. The cryptocurrency's crash to a bottom at $78,900 marked a 30% correction from its January 30 all-time high of $108,786. This level of pullback is typical in strong bull markets and often precedes the next leg up.

Another factor reinforcing Bitcoin's bullish outlook is its ability to find support along its parabolic advance despite the recent dip. This indicates a strong underlying demand for the cryptocurrency, even during periods of market volatility.

The successful retest of a CME futures gap below $80,000 is another bullish signal. This gap had been a key concern even as Bitcoin rallied to above $100,000 in January, with technical analysis warning of a drop toward this level. Now that the CME gap has been filled, the next step is the resumption of bullish momentum.

Brandt also highlighted the emergence of a "foot shot doji" candlestick pattern, which typically indicates the exhaustion of selling pressure and a potential reversal. Furthermore, he referenced the Factor three-day trailing stop rule to indicate that Bitcoin is regaining strength. Lastly, he pointed to a high-volume "puke out," where sellers have exited Bitcoin in capitulation. Taken together, these signals suggest that Bitcoin's latest rally is not just a temporary bounce but a confirmation of bullish momentum.

As Bitcoin's fundamentals continue to strengthen, the cryptocurrency is expected to move upwards in the coming weeks. Interestingly, institutional investments through Spot Bitcoin ETFs