🚩Bitcoin loses 2% partially erasing euphoric gains fueled by US cryptocurrency reserve 🗽

Over the weekend, cryptocurrency prices surged sharply after Donald Trump announced via Truth Social and X that the United States would establish reserves composed of cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Cardano (ADA), and Solana (SOL). The market reacted euphorically to this statement, pushing Bitcoin up from around $80K to $94.5K, while smaller projects like Ripple gained over 30%.

However, on Monday, sentiment appears to be cooling down, potentially signaling profit-taking. Ripple and Solana are down around 9%, while Ethereum has pulled back by more than 6% to just under $2,400. Similarly, Cardano has declined by approximately 6%. It remains uncertain how large the U.S. purchases will be if the reserve is ultimately implemented.

Bitcoin (D1, M3 Interval)

Bitcoin’s price has risen above the EMA200 (red line) and is approaching a key resistance level around $95K, where significant price reactions have been observed. Today, the price has fallen back below the 38.2% Fibonacci retracement level and the average purchase price of short-term investors, which is around $92K. This suggests profit-taking following yesterday’s rally.Source: xStation5

The so-called path of least resistance for Bitcoin has been trending downward for several weeks.Source: xStation5

Looking at Solana and Ripple (XRP, gold chart), we see that while Solana has completely erased its gains since Trump's victory, Ripple remains relatively strong. However, both cryptocurrencies are down around 9% today.Source: xStation5