BTC Price Eyes $86K After Arizona Approves 10% Crypto Fund—Is a State-Backed Bitcoin Reserve Coming?

Arizona is making headlines in the crypto world as its Arizona crypto bill moves closer to becoming law. Senate Bill 1373, which outlines the creation of a state-managed fund built from digital assets seized in criminal cases, cleared a key hurdle in the House on April 17. If passed, it would allow the state treasurer to invest up to 10% of the fund into digital assets per fiscal year and permit lending, provided the risk remains under control. With this bold step, Arizona joins states like Texas and New Hampshire in paving the way for a public Bitcoin Reserve, signaling its growing confidence in crypto’s long-term role in the economy and its potential impact on BTC price trends.

Bitcoin Gets Spotlight in Arizona

Alongside the broader Arizona crypto bill, another proposal – SB 1025,  is gaining serious attention. This bill is all about Bitcoin and proposes allowing the state’s treasury and retirement systems to invest up to 10% of available funds into a dedicated Bitcoin Reserve. It also includes language for storing BTC in a segregated federal account for added security. After passing a crucial vote earlier this month, it’s now awaiting a final decision. These twin initiatives mark a significant shift in how Arizona sees Bitcoin’s place in public finance, which is already creating ripples in investor confidence and may subtly shape BTC price movement over the coming days.

Crypto Momentum Faces Political Pushback

Despite the buzz, things aren’t moving smoothly. Governor Katie Hobbs has pledged to veto all new legislation, including the Arizona crypto bill, until a separate funding issue for disability services is resolved. Her veto streak is already the highest among U.S. governors this year, throwing uncertainty over both crypto proposals. Still, the serious consideration of a Bitcoin Reserve at the state level is encouraging for market sentiment. As this narrative gains ground, it’s no surprise we’re seeing early reflections of that optimism in recent BTC price behavior, setting the stage for deeper technical analysis.

XRP Price Action Analysis of April 18th, 2025

The BTC price on a 5-minute chart showcases a volatile intraday movement within a clearly defined ascending channel, where the price bounced multiple times from both trendlines. The lower trendline consistently acted as dynamic support, guiding BTC price upwards until it encountered strong resistance near $85,500. Despite repeated tests, the price failed to breach this ceiling, resulting in short-term corrections. Notably, the RSI indicator oscillated between overbought and oversold regions, confirming high-frequency momentum shifts. Each overbought condition, especially near resistance, led to pullbacks, while oversold zones near the channel base triggered recoveries.

Chart 1, Analyzed by Alokkp0608, published on April 18th, 2025

A sharp dip around 14:00 UTC breached the channel temporarily but was quickly reversed, indicating strong buying interest near the support level at $84,000. The MACD also presented a mix of golden and death crosses, reflecting the tug-of-war between bulls and bears. Golden crosses occurred consistently after RSI dipped into oversold territory, providing bullish confirmation and signaling brief upward surges. However, the following death crosses,  particularly during flat RSI conditions, led to consolidation or minor drops. The last leg of the chart shows a potential golden cross forming again, with RSI climbing above the midline, suggesting renewed short-term bullish momentum. 

Arizona’s Crypto Push Is Stirring Up Bitcoin Buzz

Arizona’s forward-thinking crypto policies are starting to resonate beyond the political scene. The recent proposals hint at a future where digital assets play a much more significant role in public finance. With the MACD forming a golden cross and RSI showing signs of recovery, market sentiment appears to be warming up. Traders are beginning to factor in the long-term implications of state-level Bitcoin adoption, which could lay the groundwork for more institutional confidence. While political uncertainty remains, especially with the governor’s veto stance, overall momentum suggests optimism is building. If this continues, we may soon see a more substantial directional shift in BTC price, reinforcing short-term bullish pressure.

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