Bitcoin (BTC) Price Drops 4% to $86,550 Following Trump's Strategic Bitcoin Reserve Order

The Bitcoin price has dropped 4% to $86550 following Trump's Strategic Bitcoin Reserve order, which failed to meet market expectations regarding future government Bitcoin acquisitions.

Key Insights:

* Trump’s executive order on the Strategic Bitcoin Reserve failed to meet market expectations regarding future government Bitcoin acquisitions, leading to a 4% drop in the Bitcoin price to $86,550.

* The White House Crypto Summit generated conflicting market responses as discussions on regulatory guidelines and institutional adoption standards continue.

* As Bitcoin price action remains volatile, whale accumulation patterns now display a +0.7% positive change in 30-Day % Change.

* To add to that, whale accumulation patterns throughout history have shown a direct correlation with price recovery trends.

* The total whale balance demonstrates movement as the 30-day moving average (SMA) maintains a consistent path.

* Smoothed whale holdings data reveals an upward trend in whale ownership over time.

* Meanwhile, Bitcoin’s price has ranged from $55,000 to $95,000 as market participants remain uncertain about its future direction.

* However, the increased whale investment in Bitcoin creates potential for price growth.

* According to CryptoQuant data, the 30-day percentage change SMA demonstrated an upward trend before Bitcoin surpassed $90,000 in early 2024, and it is now showing similar indications.

* The ongoing accumulation of BTC by whales could trigger another bullish cycle that would match the cryptocurrency’s historical pattern of price recoveries through whale activity.

* Moreover, the Cost Basis Distribution chart for Bitcoin reveals accumulation points of large BTC volumes, which help identify crucial support and resistance levels.

* And the most robust support area exists at $59,882 because 220,150 BTC were purchased there, which serves as a price threshold for potential buyers during market downturns.

* The $59,882 price point functions as a robust demand area, which traders will watch for Bitcoin’s performance if market selling increases.

* Conversely, the price point of $98,081 represents a significant barrier because 320,040 BTC were acquired at this level.

* The price zone of $98,081 could trigger increased selling pressure because numerous investors would aim to cash out their profits.

* The glassnode heatmap visualization demonstrates Bitcoin has approached $100,000 several times in the past, but eventually reversed direction.

* The next Bitcoin price movement will likely be influenced by its strongest accumulation zones, which include $59,882 as a support level and $98,081 as a resistance point.

* Meanwhile, the Open Interest (OI) Change for Bitcoin during the past seven days fell 12% which demonstrates substantial liquidation of leveraged positions.

* The market resets its position through forced liquidations, which create healthier price movements after this type of leverage flush.

* The price movement of the token alongside Open Interest percentage change reveals distinct patterns where excessive leverage leads to sudden OI drops.

* The market has shown a tendency for BTC to stabilize after OI drops between -10% and -25% in previous market cycles.

* Currently, the token maintains its trading range between $65,000 and $70,000 as the OI percentage change drops by more than 12%, which matches previous Bitcoin support levels.

* The yellow markers in the chart indicate previous instances where BTC experienced steep OI declines, which led to bullish price movement, thus suggesting another accumulation phase may be underway.

* The historical data shows that the token tends to stabilize after OI resets before it continues its upward trajectory.

* Historical patterns indicate Bitcoin may be approaching its local price bottom before investors return to buy.

* However, Bitcoin dominance displays a recognizable pattern, which indicates it will reach support before initiating a powerful upward trend.

* The BTC Dominance/BTC USDT chart shows three distinct bottom patterns that led to Bitcoin price increases.

* Currently, Bitcoin dominance has now established itself at a crucial support zone, which indicates an upcoming market shift.

* The white trendline shows a resistance break that suggests BTC dominance might reach stability before starting another upward trend.

* While the blue curved lines in the chart demonstrate a recurring pattern showing Bitcoin dominance decreasing before it establishes support and then starts a new upward phase.

* The yellow arrow marked “Altcoin Season” on the chart indicates that BTC will finish its upcoming rally before altcoins receive increased capital inflows.

In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.