Bitcoin had one of its biggest surges on Sunday. It saw massive buying pressure following a fresh endorsement from the US President.
On Sunday, Donald Trump posted on Truth expressing his love for the apex coin and the second-largest cryptocurrency.
He posted his thoughts on the Truth app while referencing an earlier post in which he talked about how a US crypto reserve would elevate the industry. The previous post sparked hopes of a national reserve that included XRP, SOL, and ADA. His latest post on the app included BTC and ETH in the reserves.
Donald Trump’s action ignited speculations that the reserve’s approval is at hand. It will feature the highlighted cryptocurrencies.
The crypto market experienced sudden surges following the President’s statements. It saw a spike in buying volume in the last 24 hours, and trading volume quickly surged from $2.85 trillion to $3.13 at the time of writing.
However, a look at the top 10 shows that the mentioned crypto assets were some of the biggest gainers. While the single post caused the surge, it appears unsustainable.
Nonetheless, data from CryptoQuant shows massive buying actions. The bulls soaked up the last seven days excess supply. Investors moved more assets from exchanges in the last 24 hours than they did in the previous three days.
Bitcoin Risk Further Declines
Other metrics on the crypto tracking platform are negative. The Binary CDD increased by over 50% as long-term holders moved more assets. The number of sellers increased by over 2% as the Asian market remains bearish, as indicated by the Korea Premium.
The network activity on Bitcoin may indicate that the surge was from the whales. On Sunday, the active addresses were 33% lower than the previous day, and transactions also dropped by over 11% during this period.
Nonetheless, the derivatives market is teeming with life following the latest hike. The taker’s buy-sell ratio is above 1, indicating more bullish actions. Open interest grew by over 8% during this session. However, funding rates dropped.
BTC Eyes $100k
The one-day chart shows a significant trajectory change in indicators following the latest spike. The apex coin opened trading at $86,031 but surged after a slight decline. The sudden shift in sentiment sent prices above $90k. It broke above $94k and peaked at $95,152. It is up by almost 10% following slight declines.
The relative strength index showed that BTC was oversold a few days ago. As buying volume spiked, it started an uptrend. This is the same reading on the accumulation and distribution chart; the bulls are soaking up the excess supply.
At the time of writing, the moving average convergence divergence prints buy signals. The 12-day EMA halted its descent and is on the uptrend. It displays an ongoing bullish convergence, with the histogram bar reducing.
Bitcoin broke above the $95k resistance but retraced. Further increases may see it edge closer to retesting $96k, resulting in further decline as the bears stage selling congestions. It is worth noting that it is also the 23% fib level and may serve as a critical support once flipped.
BTC may break above $96k but it remains unlikely to flip $100k in the next seven days.
