Bitcoin could face increased downside volatility if it closes the week below the key $82,000 support level as investor sentiment remains subdued following short-term disappointment in the US Strategic Bitcoin Reserve.
President Donald Trump’s executive order, signed on March 7, outlined a plan to create a Bitcoin reserve using cryptocurrency forfeited in government criminal cases rather than actively acquiring Bitcoin (BTC) through market purchases.
The lack of direct federal Bitcoin investment has “led to a near-term negative market reaction and a decline in Bitcoin’s price,” according to Bitfinex analysts.
Bitcoin needs to close the week above the key $82,000 support to avoid a further decline due to this short-term investor disappointment, the analysts told Cointelegraph, adding:
“Investors had anticipated that federal accumulation of Bitcoin would signal strong institutional support, potentially driving prices higher….
