Bitcoin price is dropping despite President Donald Trump announcing that the US government will not sell any of the nearly 200,000 BTC currently in its possession. However, speculation that China could follow in the US footsteps and launch its own BTC reserve has stirred market interest. If China were to announce a Bitcoin strategic reserve, would BTC price surge to $200,000?
Bitcoin price today trades at $86,221 after a slight 2.5% drop in 24 hours.
Will China Launch a Bitcoin Strategic Reserve?
Bitcoin price is poised for a parabolic rally if China launched a Bitcoin strategic reserve. According to CNBC, many countries including China and the Middle East are likely to adopt a Bitcoin buying strategy. It also added that there were reportedly conversations within the Chinese government to start buying BTC if the US starts accumulating the asset.
China was once the world’s largest Bitcoin miner before imposing a ban in 2021. CNBC believes that it would be very easy for the country to set up a BTC reserve if they start mining BTC again for the reserve. The country could also adopt a Bitcoin strategy to evade sanctions amid an ongoing tariff war between China and the US.
China has the second-highest Bitcoin holdings among countries after the US, with 195,000 BTC seized from the PlusToken crypto scam.
MicroStrategy Executive Chairman Michael Saylor had earlier said that Trump’s move to establish a US Bitcoin reserve was “a turning point in the financial and geopolitical landscape of the 21st century.”
If more nation-states start buying and holding Bitcoin it could push BTC price toward an all-time high and possibly $200K.
Analyst Maps Bitcoin Path to $200K
Bitcoin is currently under bearish pressure amid a lack of strong demand in the broader crypto market. However, according to analyst MerlijinTrader, Bitcoin could hit $200K this year if it follows previous patterns.
In his Bitcoin price prediction, the analyst noted that BTC was following the same cycle as in 2017 and 2022. Bitcoin was in the early stages of this cycle despite the recent pullback. If the bullish momentum resumes, BTC price could skyrocket towards $200,000.
Key Levels to Watch in Bitcoin Price
Despite this bullish take, Bitcoin’s 4-hour chart shows that bearish trends are still prevalent. The RSI is fluctuating below 50, indicating that sellers are in control. However, an ascending triangle pattern suggests that bulls could regain control.
For Bitcoin to resume an uptrend and retake levels above $90,000, there needs to be a surge in demand. The volume profile bars show that at the current price, many traders are not willing to buy Bitcoin, which may inhibit the price action.
A bullish catalyst is needed to aid a Bitcoin price rally past the $90,000 psychological level. Plans for a Bitcoin reserve by the US, China, and other countries could aid this bull run, but the short-term sentiment remains weak.
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