Bitcoin price surged to an all time high of $106,000 as reports from Russia and Japan approved the idea of Bitcoin reserves as national strategic reserves similar to traditional currency reserves. This has sparked renowned optimism in the crypto king, as the token now trades above its previous high.
Russia’s and Japan’s Reserve Proposals
Anton Tkachev, a member of the Russian Parliament’s State Duma, has put forward the creation of a Russian Bitcoin Reserve which has caught the government’s attention.
According to RIA Novosti, its goal is to validate the country’s economic security. They’ll do so by incorporating Bitcoin into its national reserve systems, like gold or foreign currencies. This is Tkachev’s forward looking policy proposal with an eye toward Bitcoin’s ability to stabilize and diversify Russia’s financial assets against global economic fluctuations.
As with Russia, Japan has seen its own parallel legislative progress on the path to embracing Bitcoin on a national level.
A proactive Japanese lawmaker Satoshi Hamada has formally demanded the National Diet create a Bitcoin reserve. The initiative is part of a wider consolidation to push for pro crypto reforms in the country. This is because it has drawn varying degrees of support from various political parties.
A growing trend with global powers also securing their financial interests through digital assets has been highlighted by Hamada.
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He is aided by another influential lawmaker, Yuichiro Tamaki. This move from Japan to explore such a reserve comes when other nations like the U.S and Brazil are also considering the role of crypto in national economic strategies.
Market Reaction to Bitcoin Reserve News and Bitcoin Price
Russia and Japan speculating, and announcing, have put a brisk pace into the Bitcoin market. But the price of Bitcoin responds to these developments not just because they represent a prevailing market sentiment but also because these strategic reserves could provide for future long term value.
The included charts show that Bitcoin’s value skyrocketed at the news of these governmental interests, touching $106,000.
On the technical chart there is significant bullish momentum that pushed the price above $105,000. A bullish trend for Bitcoin has been marked as the price hit $106,488. This supports the trend of prices staying above the 50 and 100 Exponential Moving Averages (EMAs). It provides comfort that the market is in strong bullish territory.
Instead, critical support levels are placed at the EMAs of approximately $100,705.15 for the 50 EMA and $98,911.36 for the 100 EMA.
Bitcoin price USD (Source: TradingView)
The Relative Strength Index shows Bitcoin is currently at 75.22 and that indicates that Bitcoin is heading to overbought territory. That means Bitcoin is oversold and prone to a pullback or consolidation. In strong bullish markets, however, Bitcoin can hover in the overbought area too long.
On the other hand, the Moving Average Convergence Divergence (MACD) shows a positive crossover with the MACD line crossing above the signal line. As histogram bars grow, that indicates growing bullish momentum, but this crossover shows that there’s even more bullish momentum building.
⚠️Disclaimer
This content aims to enrich readers with information. Always conduct independent research and use discretionary funds before investing. All buying, selling, and crypto asset investment activities are the responsibility of the reader.
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