Bitcoin (BTC) sought to reinforce higher support at the March 20 Wall Street open as bulls broke out of a key downtrend.
BTC/USD 1-hour chart. Source: Cointelegraph/TradingView
Trump pledges to make US “Bitcoin superpower”
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD returning above $86,000.
Now circling the daily open, Bitcoin continued to build on strength which came the day prior thanks to encouraging macroeconomic signals from the US Federal Reserve.
Rumors of a further announcement on crypto by the US government administration helped BTC price action to reach two-week highs.
President Donald Trump was due to deliver virtual remarks on the third day of the Blockworks Digital Asset Summit 2025 event in New York.
Trump doubled down on his pledge not to sell confiscated US Bitcoin, as well as end regulatory mechanisms such as Operation Chokepoint 2.0. No new information on BTC purchases, however, was delivered.
He said:
“Together we will make America the undisputed Bitcoin superpower and the crypto capital of the world.”
In so doing, BTC/USD reclaimed two key moving average trend lines, including the 200-day simple moving average (SMA), a key support component during bull markets.
Analyzing the current landscape, popular trader and analyst Rekt Capital focused on a similar reclaim of the 200-day exponential moving average (EMA).
“Bitcoin has most recently Daily Closed above the 200 EMA and in fact is now in the process of retesting it into new support,” he wrote in part of his latest content on X, calling the trend line a “long-term gauge of investor sentiment towards BTC.”
BTC/USD 1-day chart with 200 SMA, EMA. Source: Cointelegraph/TradingView
A further X post revealed a more impressive feat from bulls, with the daily chart showing a breakout from a downtrend on Bitcoin’s relative strength index (RSI) — something in place since November 2024.
“Bitcoin has broken the Daily RSI Downtrend dating back to November 2024,” Rekt Capital confirmed.
BTC/USD 1-day chart. Source: Rekt Capital/X
Analysis: Markets may “wake up” to hawkish Fed
Continuing on the macro picture, trading firm QCP Capital was cool on the outlook.
Related: Peak ‘FUD’ hints at $70K floor — 5 Things to know in Bitcoin this week
It warned that the initial risk-asset bounce on the back of the Fed decision could easily reverse.
“Beyond the immediate excitement, the Fed’s tone was notably cautious. Policymakers downgraded economy growth projections to 1.7% (a 0.4% reduction), while raising their inflation forecast to 2.8%, signaling a growing risk of stagflation,” it wrote in its latest bulletin to Telegram channel subscribers.
“Additionally, the Fed’s dot plot revealed a more hawkish shift from the one in December, with the number of officials forecasting no rate cuts in 2025 increasing to four.”
Fed target rate probabilities for June FOMC meeting. Source: CME Group
The latest data from CME Group’s FedWatch Tool showed markets retaining bets of interest rate cuts occurring no sooner than June.
“Will the rally sustain, or will investors wake up to the reality that risks remain firmly in play?” QCP queried.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
