5 things you need to know about Bitcoin this week

Bitcoin returned in vengeance this week as President Donald Trump appears to be confirming a strategic crypto sanctuary.

Bitcoin (BTC) price action abandons the slump and seals off a $10,000 “green” candle and a huge CME futures gap each day.

Trump defends the reserve ahead of the first White House Script Summit, promising that he will “come more.”

The big week of US employment data culminates in Crypto Summit Day with Federal Reserve Chairman Jerome Powell speaking.

Bitcoin market metrics show signs of a recovery, including a solid rebound in on-chain profitability.

The sense remains frightening as traders digest the latest developments. Is it too early to believe in a comeback at Bull Market?

Bitcoin Traders Warn about Fresh BTC Price Dip

BTC’s price action is in the centres of high-profile, but it’s no longer for the same reason as last week.

Amid the US crypto reserve reaction, the monthly lows gave way to solid rebounds.

In some markets, BTC/USD provided data from $10,000 candles daily, Cointe Legraph Markets Pro, and TradingView shows.

In response, traders are keen to portray key support areas in the event of retest.

“The $90,000 to $91,000 area, which has served as a low range for the past few months, is an important area to look at,” trader Dern Crypto Trade wrote in one of his latest posts on X.

“We’ve seen violent breakdowns and are back in range. Prices are currently testing it, and this is going to be the area the Bulls want to intervene. Everyday closures are the most important here, so keep an eye on them this week.”

Daan Crypto Trades points to the three-month trading range that BTC/USD remained before the liquidation cascade, filling the “gap” in the CME Group’s Bitcoin futures market with $78,000.

For others, including fellow trader Mark Cullen, there is a risk that now offers a short-term downside magnet, another gap in Bitcoin history as a result of daily candles.

“That 90K liquidity has been implemented. Currently, Bitcoin is focusing on the 95K level, which exceeded yesterday’s high. I think this will be our open target,” he told X-follower along with the liquidity chart in his order book.

“The question for me is whether the 85K levels have been retested to clean up the CME gap and inefficiency from the pump yesterday. If they did that to us, it would be one hell of shakeouts…”

Crypto Summit Week receives “Trump Pump” treatment

The two social media posts were everything that took to rekindle the market frenzy in strategic crypto sanctuaries in the US.

As Cointelegraph continues to report, Trump returned to the topic over the weekend, suddenly appearing to confirm that the strategic crypto sanctuary would move on.

As Trump mentioned, there was the initial question as to whether Bitcoin or Ether (ETH) would soon disappear, adding that he “loves” both tokens.

Now the focus is switching to the long-term meaning of such a movement.

“This means that Bitcoin is currently out of bare market territory, about 16% off the new history high,” Kobeissi’s letter trades resources he wrote in part of the topic’s X-thread.

Kobeissi pointed out that the future dedication to the US Crypto Summit should bring further news triggers, referring to Crypto Czar, David Sacks, in Washington.

“President Trump has announced a crypto strategic reserve consisting of Bitcoin and other top cryptocurrencies,” he replied with an X after Trump’s post.

“This coincides with his weekly 1 EO 14178. President Trump has kept his promise to make the United States the “crypto capital of the world.” More coming to the summit. ”

The event is scheduled to take place on March 7th, hosted by Trump.

Nevertheless, Kobeissi asked if a “good news” story for Crypto could emerge from the new US administration.

“The question is, what is the next big catalyst for cryptography?” Summary that what it suggested could be “the biggest emotional change in crypto history.”

“We’ve seen almost every promise of Trump’s campaign priced here. What’s the next step in the crypto adoption and growth story?”

Focused work and talk to award Powell

The remaining macroeconomic development this week focuses on important US employment data that has proven to be sensitive in recent months.

March 6th looks at the initial unemployed claims, but the next day, the US employment report comes before a speech from Federal Reserve Chairman Jerome Powell.

Therefore, potential volatile catalysts remain stacked towards the end of the week.

However, inflation remains a market eager to the Fed last week for guidance on supporting pleasant results from the “preferred” inflation gauge, the Personal Consumption Expense (PCE) index.

“This week is about the labour market and the Fed,” Kobeissi’s letter states in X’s weekly outlook thread.

Kobeissi noted that the next Fed’s interest rate decision will be two weeks away and “comes among the volatility of key markets.”

The latest data from CME Group’s FedWatch tool shows little belief that rate cuts continue this month, at just 7%.

Coinbase Premium tip is rebound rebound

There are some ways to demand in the crypto market before it recovers decisively, various data sources show.

The Coinbase Premium Index, which tracks the difference in spot prices between Coinbase’s BTC/USD pair and Binance’s BTC/USDT equivalent, is currently bounced back against positive territory.

Plus Premiums show an increase in buyers’ interest in the US, accompanied by many of the highest Bitcoin drives of the present time through the fourth quarter of last year.

In one of the latest “QuickTake” blog posts on February 6th, Onchain Analytics Platform Cryptoquant said the index “indicating signs of recovery.”

“This has not yet confirmed strong institutional purchases, but it shows that sales pressures are clearly relaxed,” commented contributor Onat Tütüncüler.

“In addition, the 50-hour moving average crossing above the 170-hour moving average suggests a possible transition to short-term bullish momentum.”

Tütüncüler noted similar indications from the adjusted used output profit margin (ASOPR) indicator.

The encrypted data shows that ASOPR is currently back above the break-even point, reflecting a return to gross profit after reaching lowest levels during mass panic sales since August 2024.

“When sales pressure slows and potential bottom signals appear, the key resistance levels to watch over the next few days are $90,000 and $92,500,” he concluded.

“Learning attention to further recovery in ASOPR and Coinbase Premium Index is important for Bitcoin’s next move.”

I’m still afraid of code emotions

Despite the positive news catalyst for the weekend, the sentiment of the crypto market seemed to need to see more of a better time ahead.

Related: When will Bitcoin become the bottom?

Using a basket of factors to determine the overall market mood score among traders, the Crypto Fear & Greed Index still sat firmly in the realm of “fear.”

On 33/100 on March 3rd, the index recovered significantly from the local lows of just 10/100 seen last week.

At the time, Julien Bittel, head of Macro Research at Global Macro Investor, was aware of the potential for a key comeback for Bull Run.

However, some remained cautious, especially given the excitement about crypto sanctuaries included a key political element.

In another quick take post over the weekend, Cryptoquant contributor Crypto warned that Trump might change the tide against bulls once again.

“His recent statement on the ‘cryptography reserve’ could set fire to new rally. But it is also possible that he later reverses his feelings with comments like, “We paid off all our debts, we no longer need a code.” That’s exactly what he is,” he insisted.

“The actors will change, but the cycle will remain the same. It’s only a timing shift. From now on, our eyes will be on the charts and our ears will listen to Trump’s critical statements.”

This article does not include investment advice or recommendations. All investment and trading movements include risk and readers must do their own research when making decisions.