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Cryptocurrency investors expect the market to likely become volatile as a new crypto-friendly administration takes office. However, as Bitcoin (BTC) reached an all-time high (ATH) of $109,000, some analysts shared bullish predictions.
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Bitcoin hits new ATH on Inauguration Day
Last week, Bitcoin soared above the $100,000 barrier for the first time in more than 10 days amid bullish expectations for January 20th. The flagship cryptocurrency continued to consolidate above this key level over the weekend, boosted by US President Donald Trump’s latest crypto moves.
On Friday, the President-elect of the United States surprised the crypto industry by announcing the official TRUMP meme coin. The token had a significant rally, hitting an all-time high (ATH) of $75 and a market cap of $15 billion, but faced significant backlash from the cryptocurrency community.
As the token overshadowed the market, Bitcoin converted a key resistance level at $102,000 into a support zone, pushing the price to a one-month high of $106,000. However, the market corrected 6% on Sunday afternoon after the then-first lady announced her meme coin MELANIA.
BTC fell below $100,000 but quickly recovered to end the week close to the levels it has recovered from recently. Ahead of President Trump’s inauguration, Bitcoin’s price rose 8.5% to a record high of $109,588.
Daan Crypto Trades noted a strong start to the week with BTC “starting today with a small CME difference, but quickly closed the gap and shot to new all-time highs”, adding that it will be an interesting week.
Daan also suggested that today was likely to be a “very volatile day in both directions” for the market, but urged investors to “focus on looking forward to the first quarter rather than the next day.” I advised.
Will BTC price continue to rise?
Cryptocurrency analyst Altcoin Sherpa suggested that BTC prices could fluctuate in the short term depending on President Trump’s comments during his inaugural address. “Once the Strategic Bitcoin Reserve is announced, I think BTC will put a candle to God and everything will be sent,” he said, adding that if there is no mention of it, a temporary decline could begin. he added.
Despite the possibility of a short-term shakeout, some analysts emphasized that Bitcoin is entering a new price discovery phase. “History suggests that this initial price discovery correction is now over,” Recto Capital said.
The analyst said December’s retrace was part of BTC’s “parabolic post-halving uptrend.” Bitcoin enters a parabolic period that lasts approximately 300 days in each cycle after each halving event, with the first price correction historically beginning between week 6 and week 8 of each parabolic phase.
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After the recent price action, analysts announced that a second Price Discovery uptrend is ahead. “Bitcoin is currently on the verge of a breakout of the $101,000 to $106,000 range, with daily closes above the $106,000 range and a continued post-breakout retest,” he said. With the breakout confirmed, Bitcoin will move a step closer to further price discovery.”
Analyst Crypto Gel highlighted BTC’s multi-year cup-and-handle pattern, saying, “Bitcoin appears to want to end this situation.” The analyst suggested that the flagship cryptocurrency “won’t wait too long,” adding that the long-term target remains $140,000.
At the time of writing, Bitcoin is trading at $104,564, down 1% on a daily basis.
Bitcoin 1 week chart performance. Source: BTCUSDT on TradingView
Featured image from Unsplash.com, chart from TradingView.com
