U.S. Military Interest in Bitcoin Reserve Drives Market Speculation

The U.S. military has expressed interest in establishing a strategic Bitcoin reserve, a development that could significantly impact the cryptocurrency market. This move has sparked speculation that Bitcoin could surge to $120,000, while Ethereum might climb to $4,500, driven by increased institutional interest.

Bitcoin has experienced a slight decline of 3.05% over the past week but has shown a notable gain of around 12% in the last month. Over a six-month period, Bitcoin has demonstrated an overall increase of approximately 8.81%, showcasing its resilience despite short-term fluctuations. The price movements indicate volatile phases intermingled with steady growth, highlighting Bitcoin's ability to maintain value under varying market conditions. Historical trends suggest that while minor corrections occur, Bitcoin exhibits promising long-term potential, appealing to investors even amid temporary setbacks.

Currently, Bitcoin is trading within a range of about $94,832 to $113,327, with immediate support at $84,880 and lower at $66,385. The closest resistance level is around $121,869, followed by another near $140,364. Recent price action suggests that bulls have gained traction this month, but the recent decline raises concerns about a potential pullback. The relative strength index hovers at 54, indicating neutral market conditions. A bounce near the lower range may attract buying interest, aiming for resistance, while failing to hold support could strengthen bearish pressure. Traders might consider entering on minor dips, using stop losses to manage risk, while watching resistance levels as potential barriers.

Ethereum has delivered a sharp rebound over the last month, with prices surging nearly 45%, marking a notable short-term recovery. Over the past six months, Ethereum experienced a decline of roughly 30%, reflecting a longer-term period of weakness that contrasts with the recent price bounce. Volatility has been evident as the market shifted from a bearish backdrop to an environment where short-term gains are taking shape. The recent uptrend hints at renewed buying interest and positions taken at lower levels during the previous downturn.

Ethereum is currently trading between about $1923 and $2961, with resistance clustered near $3395 and an additional hurdle at $4433. On the support side, key levels stand at approximately $1318 and a deeper floor near $280. Bulls show growing strength as momentum and RSI readings lean toward optimism, even though a clear trend remains elusive. Trading ideas include buying near support to capture the recovery while watching for resistance rejections that might curb gains. A sustained move above $2961 could spur further rallies, yet failure to hold support might bring renewed selling pressure.

Both Bitcoin and Ethereum have shown strong gains with increased interest from big players. As Bitcoin receives strategic backing, it stands a chance to soar to $120,000. At the same time, Ethereum could reach $4,500 due to growing demand. The support for Bitcoin reflects its perceived value and stability, while Ethereum benefits from advancements and popularity among institutions. The crypto market is likely to see significant movement as these trends continue.