01.05.202612:17 Forex Analysis & Reviews: Bitcoin seen as US national security issue

Bitcoin posted a solid gain during today's Asian session, marking a positive close to April and the start of the new month.

Meanwhile, yesterday, US Secretary of Defense Pete Hegseth made an unusual statement, saying that Bitcoin is a matter of US national security.

He said that, over the past decade, Bitcoin had moved from a marginal asset to an instrument discussed not only by investors but also by the military as well and that its decentralized nature and global reach posed new challenges and opened unexpected opportunities for states. He argued that the absence of a single center of control and the ability to transact outside traditional financial systems make Bitcoin both an attractive tool and a potential threat.

Hegseth noted that Iran, North Korea, and China are already actively studying and using Bitcoin for strategic purposes. For some, it is a means to evade sanctions and finance prohibited activities; for others, it is a tool for cyber operations and for accumulating reserves beyond the influence of rival states. Understanding the motives and mechanisms by which these countries use Bitcoin, he said, is critical to developing an appropriate response strategy.

Hegseth added that he had long supported Bitcoin and the crypto industry, viewing them as presenting both challenges and potential benefits. He also said the Department of Defense is already working on initiatives to study and make sense of this new digital landscape. He said that their task was not only to counter potential threats from hostile actors, but also to harness that potential in the interests of US national security, whether by defending against cyberattacks or by developing new, more effective financial tools.

Trading recommendations:

Regarding Bitcoin's technical picture, buyers are currently targeting a return to $77,700, which opens a direct route to $79,100, and from there to $80,900. The most distant target is the high near $83,100; breaching that level would signal attempts to return to a bull market. In case of a decline, I expect buyers at $76,300. A drop below that area could quickly push BTC toward $74,700. The furthest target there would be around $73,100.

Regarding Ethereum's technical picture, a clear consolidation above $2,290 opens a direct route to $2,353. The most distant target is the high near $2,409; breaching that would indicate strengthening bullish sentiment and a return of buyer interest. In case of a decline, I expect buyers at $2,225. A return of the instrument below that area could quickly send ETH toward $2,162. The furthest target there would be around $2,114.

What we see on the chart:

- Red lines indicate support and resistance levels where either a price slowdown or active growth is expected;

- Green lines indicate the 50-day moving average;

- Blue lines indicate the 100-day moving average;

- Light green lines indicate the 200-day moving average.

A crossover, or a price test of moving averages, typically either halts the move or sparks fresh market momentum.