Bitcoin's consolidation between $90,000 and $100,000 is facing potential roadblocks. Tightening fiat liquidity, a delayed strategic BTC reserve by the Trump administration, and bearish RSI divergence raise concerns about the next bull breakout.
Bitcoin (BTC) is facing potential headwinds that could derail its next bull run. The cryptocurrency has been consolidating between $90,000 and $100,000, building anticipation for a breakout. However, several factors are raising concerns among bulls.Firstly, there's a tightening of fiat liquidity, particularly in the U.S. dollar (USD). The Treasury General Account (TGA), the U.S.
government's checking account at the Fed, has seen its cash balance surge from $623 billion to $800 billion in just four weeks. This increase in reserves could limit the amount of USD available for lending and investment, potentially slowing down economic activity and making risk assets like crypto less attractive. Secondly, the Trump administration's approach to establishing a strategic BTC reserve is proving to be more cautious than initially anticipated. While Trump previously expressed his interest in such a reserve, which could have significantly boosted BTC prices, his current stance involves evaluating its feasibility. This delay in action has disappointed crypto investors expecting a swift move on this initiative. Finally, technical indicators are also raising red flags. The 14-week relative strength index (RSI) has diverged bearishly, contradicting the higher high in prices. This divergence, similar to the pattern seen in 2021, suggests a slowdown in bullish momentum. A renewed bullish trend could be signaled if the RSI crosses above the falling trendline representing this divergence. Omkar Godbole, Co-Managing Editor on CoinDesk's Markets team, emphasizes these concerns, stating, 'We're looking at a scenario where key liquidity sources are drying up or being more tightly controlled. This could lead to a slowdown in economic activity, higher borrowing costs, and potentially a more challenging environment for risk assets, including crypto.
BITCOIN BULL MARKET LIQUDITY TRUMP STRATEGIC RESERVE RSI
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