Bitcoin (BTC) showed resilience on March 20 as bulls successfully pushed the price beyond a critical downtrend, reinforcing higher support levels at the Wall Street open.
Trump Vows to Make the US a ‘Bitcoin Superpower’
According to TradingView data, BTC/USD climbed back above $86,000, maintaining momentum from the previous day, spurred by positive signals from the US Federal Reserve.
Speculation about an upcoming announcement regarding cryptocurrency policy from the US administration fueled BTC’s rise to its highest levels in two weeks.
Former President Donald Trump was scheduled to speak virtually on the third day of the Blockworks Digital Asset Summit 2025 in New York. During his address, Trump reaffirmed his commitment to safeguarding the Bitcoin held by the US government and vowed to dismantle restrictive policies such as Operation Chokepoint 2.0. However, he did not provide any new updates regarding potential government Bitcoin acquisitions.
He stated:
“Together, we will make America the unrivaled Bitcoin superpower and the leading hub for crypto innovation.”
As a result, BTC/USD successfully reclaimed key moving averages, including the 200-day simple moving average (SMA), a crucial indicator of support in bullish market conditions.
Market analyst and trader Rekt Capital highlighted the significance of another key metric—the 200-day exponential moving average (EMA).
“Bitcoin has recently achieved a daily close above the 200 EMA and is now in the process of converting it into new support,” he noted on X, describing the trend line as a “long-term indicator of investor sentiment towards BTC.”
In another post, Rekt Capital emphasized a major technical breakthrough: Bitcoin’s daily relative strength index (RSI) had finally broken out of a downward trend that had persisted since November 2024.
“Bitcoin has successfully broken the daily RSI downtrend that dates back to November 2024,” he confirmed.
Market Outlook: Fed’s Hawkish Tone May Cause Reassessment
Despite the initial excitement, trading firm QCP Capital remained cautious regarding the broader macroeconomic picture.
The firm warned that the positive reaction to the Fed’s decision could quickly reverse.
“Beyond the immediate rally, the Fed adopted a more cautious stance. Policymakers reduced economic growth projections to 1.7%—a 0.4% drop—while increasing the inflation estimate to 2.8%, suggesting a growing threat of stagflation,” QCP stated in its latest Telegram bulletin.
Additionally, the Fed’s latest dot plot revealed a more hawkish stance than in December, with an increasing number of officials expecting no rate cuts in 2025, rising to four members.
According to CME Group’s FedWatch Tool, market expectations still point to interest rate cuts beginning no sooner than June.
“Will this rally hold, or will investors soon recognize that significant risks remain?” QCP questioned.
For more news, find me on Twitter Giannis Andreou and subscribe to My channels Youtube and Rumble
What is your opinion on this particular topic? Leave us your comment below! We are always interested in your opinion!
