Bitcoin’s price surged above the $66,000 mark before President Donald Trump’s televised address to the nation, driven by an uptick in risk appetite across global markets. Although the rally lost some steam and the cryptocurrency temporarily pulled back, Bitcoin managed to settle around $65,500. Market observers believe that this price action, along with strong stock market gains and Trump’s economic signals, could be paving the way for a new local bottom for digital assets.
Trump’s Remarks Spark Volatility in Crypto Markets
During his address, Trump emphasized the recent decline in inflation and signs of an economic rebound, highlighting a 1.7% drop in core inflation over the last three months. Presenting his first year back in office as a historic economic comeback, Trump offered reassurances that sparked a temporary rebound among risk-sensitive assets suffering from regulatory uncertainty. His commitment that U.S. economic policies would not revert to past approaches provided additional optimism. In the wake of his statements, Bitcoin climbed swiftly from $64,000 to $66,000 within hours.
Technical Outlook: Key Resistance and Support Levels in Focus
Bitcoin hit resistance around $66,000 and fell short of breaking higher, resulting in a narrow consolidation range. The $64,500 level is now acting as crucial support, with the price having posted a brief 3.7% uptick from recent lows. However, the failure to close four-hourly candles above $66,500 suggests buyers lack strong momentum. Should support be lost, the market remembers Monday’s $370 million in liquidations as Bitcoin fought to protect the $60,000 threshold. Insights from Polymarket and CryptoQuant show that the $55,000 zone could serve as the next major floor should selling pressure resume.
Despite these deepening support levels, hopes for a rebound remain alive provided buyers don’t let prices test fresh lows. Three technical indicators are still flashing warning signs of capitulation, and Bitcoin currently trades nearly 50% beneath its all-time high. While a mild recovery in trading volumes offers some optimism in the short-term, the absence of a sustained push above $66,000 keeps technical analysts on edge.
Risk Sentiment and Bitcoin’s Correlation With Equities
Looking across broader markets, Bitcoin continues to mirror the trajectory of major stock indices. Gains in Asian exchanges and upbeat expectations ahead of Wednesday’s Nvidia earnings have spilled over from tech stocks into the crypto space. Notably, Solana jumped 8% and Chainlink rose 5%, fueling a stronger rally among altcoins compared to Bitcoin itself.
Cautious undertones persist among institutional players, however. Recent outflows from crypto-linked ETFs suggest that major investors remain wary and are in no rush to significantly increase stakes unless Bitcoin can decisively break through persistent resistance levels.
Observers warn that if Nvidia’s financials disappoint and tech stocks falter, the resulting flight from risk could see Bitcoin slip toward $63,000.
The next 24 hours could prove decisive. Should Bitcoin reclaim $67,500, it would confirm a short-term break of the current downtrend, potentially setting the stage for a move toward $70,000. But a fall below $64,000 could signal renewed market weakness, even as Trump’s economic promises resonate. Trading data from Polymarket hints that if macroeconomic challenges persist, a slide toward $55,000 cannot be ruled out.
