Meanwhile, as Bitcoin tries to determine its next direction, American Bitcoin, a Bitcoin mining company founded by Eric and Donald Trump Jr., reported that it has recently purchased 363 BTC.

Coincidence or not, these purchases occurred during the market crash in November. According to the company's announcement, the total volume of Bitcoin assets for American Bitcoin grew to 4,367 BTC as of December 2. In the previous report on November 7, the company stated it had 4,004 BTC. This indicates that American Bitcoin was acquiring Bitcoin during the November downturn when the price dropped to nearly $82,000 from a peak of $126,000 a month earlier.

"Strategic accumulation continues," the company stated in its announcement. Thus, American Bitcoin has demonstrated confidence in the long-term potential of the cryptocurrency by taking advantage of the market's temporary weakness to ramp up its holdings. This move can be viewed as a strategic investment in the future of digital assets, especially given the reputation and influence of Trump's family in the business world.

Acquiring Bitcoin during price declines is a common tactic among experienced investors seeking to maximize profits during subsequent market recoveries. American Bitcoin appears to be sticking to this strategy by capitalizing on the opportunity to buy more Bitcoin at low prices.

Meanwhile, the company's stock plummeted 38% after a private placement occurred on Tuesday, ahead of a merger. After the stock closed at $2.19, it rose 9.13% on Wednesday, closing at $2.39. Co-founder Eric Trump stated that the volatility was expected but expressed confidence in the company's fundamentals.

American Bitcoin also reported strong results for the third quarter: revenue increased to $64.2 million from $11.6 million year-on-year, and net profit reached $3.5 million compared to a net loss of $0.6 million a year earlier.

Trading recommendations

In terms of the technical picture for Bitcoin, buyers are currently targeting a return to the $94,600 level, which opens a direct path to $97,300, and from there, it's just a step away to the $99,400 level. The furthest target will be the peak around $102,300, and overcoming this level will indicate attempts to return to a bull market. If Bitcoin falls, I expect buyers around the $92,000 mark. A return of the trading instrument below this area could quickly push BTC down to around $89,600, with the furthest target being the $87,200 area.

As for the technical picture for Ethereum, a clear consolidation above the $3,283 level opens a direct path to $3,474. The furthest target will be the peak around $3,664, and overcoming this level will indicate strengthening bullish market sentiment and renewed buyer interest. If Ethereum falls, I expect buyers around the $3,126 level. A return of the trading instrument below this area could quickly push ETH down to around $2,994, with the furthest target being the $2,924 area.

What's on the chart

• Red lines represent support and resistance levels, where price is expected to either pause or react sharply.
• The green line shows the 50-day moving average.
• The blue line is the 100-day moving average.
• The lime line is the 200-day moving average.

Price testing or crossing any of these moving averages often either halts movement or injects fresh momentum into the market.