Bitcoin may experience increased downside volatility if it closes below the crucial $82,000 support level this week, as investor sentiment is dampened by recent developments regarding the US Strategic Bitcoin Reserve. President Trump's executive order on March 7 directed the use of cryptocurrency forfeited in criminal cases instead of directly acquiring Bitcoin. This decision has resulted in a negative market reaction, with analysts at Bitfinex noting that the lack of federal investment has tempered expectations of institutional support for Bitcoin. The prospect of closing below $82,000 could lead to further declines, with potential leveraged long liquidations exceeding $1.13 billion across exchanges. Although Bitcoin has struggled to maintain significant momentum, recent technical indicators, such as the relative strength index (RSI) showing an oversold condition, suggest that it may be nearing a local bottom. Upcoming economic indicators from the US, including the Consumer Price Index and job openings report, might also influence Bitcoin's short-term price movements, according to experts.

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