As the new crypto-friendly administration takes office, crypto investors expect a potentially volatile market. However, some analysts shared their bullish predictions as Bitcoin (BTC) hit its latest all-time high (ATH) of $109,000.
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Bitcoin hits new ATH on Inauguration Day
Last week, Bitcoin breached the $100,000 barrier for the first time in ten days amid expectations of a January 20 rally. The flagship crypto continued to strengthen above this key level over the weekend, boosted by US President Donald Trump’s latest crypto moves.
On Friday, the incoming president of the United States surprised The crypto industry by launching its official Trump MemeCoin. The token saw a massive rally, hitting a $75 all-time high (ATH) and a market capitalization of $15 billion but faced significant backlash from the crypto community.
As the token eclipsed the market, Bitcoin replaced the key $102,000 resistance level as a support zone, pushing the price to a one-month high of $106,000. However, the market saw a 6% correction on Sunday afternoon after the then-incoming First Lady launched her memecoin, Melania.
BTC fell below the $100,000 mark before quickly recovering, closing the week near recently regained levels. Before Trump’s inauguration, the price of Bitcoin rose 8.5% to its new high All time high is worth $109,588.
Dawn crypto trading noted BTC’s good start to the week “opened today with a small CME gap but it quickly closed and went straight to new all-time highs,” adding that it will be an interesting week.
Dan also indicated that today would likely be a “very volatile day in both directions” for the market but advised investors to “be aware of what you expect for Q1 and not the next day.”
BTC price to continue rising?
Crypto Analyst Altcoin Sherpa suggested That BTC price may see short-term volatility depending on Trump’s comments during his inauguration speech. “If a strategic bitcoin reserve is announced, I think BTC puts in a god candle, and sends everything,” he said, noting the lack of mention could trigger a momentary pullback.
Despite the potential short-term setback, some analysts highlighted that Bitcoin is entering a new price discovery phase. Rekt Capital was told“History suggests that this first price discovery correction is now over.”
According to the analyst, the December retrace was part of BTC’s “post-halving parabolic upside phase.” Bitcoin enters A parabolic period that lasts approximately 300 days, each cycle following a halving event, historically with the first price correction between weeks 6 and 8 of each parabolic phase.
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After the recent price action, the analyst announced that a second price discovery uptrend is ahead. that explained that “Bitcoin is now looking to breakout from its $101k-$106k range. A daily close above the $106k range followed by a breakout retest of higher resistance would confirm the breakout and bring Bitcoin one step closer to additional price discovery.”
Analyst crypto jail exposed BTC’s multi-year cup and handle pattern, which “seems like what Bitcoin wants to accomplish.” The analyst suggested that the flagship crypto “won’t wait much longer,” adding that the long-term target remains at $140,000.
As of this writing, Bitcoin trades at $104,564, down 1% on the daily timeframe.
Featured image from Unsplash.com, Chart from TradingView.com
