Despite a short pause, Bitcoin and Ethereum don't appear to be finished with their upward moves. While Bitcoin slightly pulled back during today's Asian trading session, Ethereum has already broken through to new weekly highs.

One potential reason behind yesterday's buying spree may have been rumors that Trump Media & Technology Group (TMTG) is planning to raise $3 billion to purchase Bitcoin and other cryptocurrencies, using proceeds from share sales to fund the investments. However, TMTG later issued a denial. The company responded bluntly to the Financial Times article, which cited six anonymous sources: "Clearly, the Financial Times has dumb writers quoting even dumber sources," the Trump media group stated.

Yet, some analysts believe the denial was intentional. If true, a $3 billion capital raise would further reinforce TMTG's growing involvement in crypto-related ventures. Last month, the company revealed plans to launch its own stablecoin, following a finalized deal with a major crypto firm to roll out "Made in America" exchange-traded funds (ETFs) based on digital assets.

Importantly, back in January, TMTG introduced a fintech startup called Truth.Fi, aimed at crypto investing. The new company received approval to allocate up to $250 million from over $700 million in cash reserves into traditional investments, SMAs, ETFs, Bitcoin, and crypto-linked assets.

Regardless of whether the capital increase materializes, rumors and discussions like these are beneficial to the crypto market, driving momentum and fostering development. Such speculation acts like a spark, fueling investor interest and drawing fresh capital into digital assets. Even if the projections don't play out, the mere anticipation of capital inflows creates positive sentiment, pushing prices higher and reinforcing market confidence.

Moreover, talks of capital expansion stimulate infrastructure and innovation in the crypto space. Developers and entrepreneurs, recognizing the rising demand for digital assets, are intensifying efforts to create new products and services aimed at improving user experience and broadening crypto use cases.

Trading recommendations

Bitcoin (BTC):

Bullish target: Buyers are focused on reclaiming $109,300, which opens a direct path to $110,000, with $110,700 as the next stop.

Extended target: The final goal would be the high near $111,400 — a breakout above this would confirm a strong bull market.

Support zone: In case of a decline, look for buyers around $108,500. A drop below this level could send BTC down to $107,700, with $107,000 as the deepest support.

Ethereum (ETH):

Bullish target: A solid hold above $2,588 opens the road to $2,625.

Extended target: A move beyond $2,667 would suggest the emergence of a bullish market structure.

Support zone: If Ethereum declines, buyers are expected around $2,548. A dip below could push ETH down to $2,520, with $2,490 as the final downside target.

Chart indicators:

• Red lines represent key support and resistance levels where price is likely to pause or react.
• Green line: 50-day moving average
• Blue line: 100-day moving average
• Light green line: 200-day moving average

Price testing or crossing moving averages often acts as a trigger for trend continuation or reversal.