Bitcoin gets a positive bounce following State of the Union
“This has been a silver lining, given the tumultuous time crypto markets have had over the past months and weeks, but it does not call for celebration just yet,” one expert warned.
Bitcoin bounced back following President Trump’s State of the Union speech Tuesday evening and is up 5.7% in the last 24 hours. The asset reached $66,900 Wednesday morning, a welcome reprieve after dropping to the $62,000 level a couple of days ago. The asset is still down 16.9% so far this month, CoinGlass data shows.
Bitcoin ETFs also returned to seeing inflows on Monday, registering $257.7 million, the most since February 6, according to SoSoValue.
Stan Low, a researcher at Grvt, told Sherwood News that bitcoin is “finally fighting back” and “demonstrating signs of recovery.”
“This has been a silver lining, given the tumultuous time crypto markets have had over the past months and weeks, but it does not call for celebration just yet,” he added.
Low said this isn’t quite yet a sign of a structural market shift, as “we are not in the clear,” given the same macro factors that have shaken the markets these past few months remain and still “plague risk markets.”
Tariff tensions, geopolitical flare-ups, and fears around digital asset treasuries selling their tokens continue to weigh on bitcoin, he said.
Levels Low is watching for potential long squeezes resulting in downward price action around mid-$64,000, while levels to watch for upside potential via short squeezes are mid-$66,000.
Pratik Kala, head of research at Apollo Crypto, told Sherwood that bitcoin is below its point of control, as well as below its 200-week exponential moving average, which “doesn’t paint a good picture for bulls in the short term.”
