Trump Promises U.S. Leadership in Bitcoin as BTC Rebounds from Four-Month Downtrend
Bitcoin breaks four-month downtrend
Bitcoin breaks four-month downtrend amid bullish momentum and renewed political support. surged past key resistance levels on March 20 as bullish sentiment strengthened following remarks from former U.S. President Donald Trump. Addressing the Blockworks Digital Asset Summit 2025, Trump reaffirmed his commitment to positioning the U.S. as a global leader in cryptocurrency.
Bitcoin Recovers as Trump Reaffirms Pro-Crypto Stance
BTC/USD climbed above $86,000, supported by macroeconomic developments and speculation surrounding upcoming regulatory shifts. Data from Cointelegraph Markets Pro and TradingView indicated that Bitcoin reclaimed its 200-day simple moving average (SMA), a crucial indicator during bull markets.
Trump’s speech further bolstered optimism, with the former president pledging not to sell confiscated U.S. Bitcoin holdings and promising to dismantle restrictive policies such as Operation Chokepoint 2.0. However, no details were provided on potential government Bitcoin purchases.
"Together, we will make America the undisputed Bitcoin superpower and the crypto capital of the world," Trump stated during his virtual address.
Technical Breakout Signals Strength
Market analysts highlighted a significant technical shift, with Bitcoin breaking a long-term downtrend on its relative strength index (RSI) for the first time since November 2024. Popular trader and analyst Rekt Capital emphasized the importance of Bitcoin closing above the 200-day exponential moving average (EMA), describing it as a key indicator of investor sentiment.
"Bitcoin has most recently daily closed above the 200 EMA and is now in the process of retesting it as new support," Rekt Capital noted on X.
Macroeconomic Uncertainty Remains
Despite the rally, trading firm QCP Capital cautioned that broader economic risks could still weigh on Bitcoin’s performance. The Federal Reserve’s latest economic projections revealed a downgrade in growth estimates to 1.7% while raising the inflation forecast to 2.8%, raising concerns about stagflation.
“The Fed’s latest dot plot also showed a more hawkish stance, with four officials now expecting no rate cuts in 2025,” QCP Capital stated in a note to clients.
According to data from CME Group’s FedWatch Tool, market participants remain uncertain about the timing of potential rate cuts, with expectations now pushed to June.
As Bitcoin’s price action continues to evolve, investors are watching whether momentum will sustain or if economic uncertainties will dampen enthusiasm.
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