Is Bitcoin Price Crash To $60K Coming Before Donald Trump Inauguration?
Highlights
- Bitcoin price has dropped to $95,000, with on-chain data and market analysts turning bearish.
- Some market analysts see Bitcoin slipping to $60,000 by Donald Trump's inauguration ceremony on January 19.
- Over 33,000 BTC, worth over $3.23 billion, were moved to exchanges last week amid heavy profit-booking.
- On December 23, there was a surge in profit-taking activity, including $7.17 billion in realized profit.
- Bitcoin must reclaim key support levels, particularly the $97,300 zone to avoid further drop.
Bitcoin price is once again seeing strong selling pressure after facing rejection at $100K on Christmas. On-chain data shows weakness amid rising exchange deposits, while bulls try to defend the $95,000 support levels. Market analysts believe that if Bitcoin loses this support, it could collapse in the range of $60,000-$70,000 by Donald Trump’s inauguration on January 20.
On-Chain Data Flashes Bitcoin Price Crash Signals
Following the rally to $100K levels, the Bitcoin selling pressure intensified pushing the BTC price all the way to $95,000 once again. On-chain data also shows weakness, as there is not enough ammunition for Bitcoin price to continue the rally.
Popular crypto analyst Ali Martinez stated that Bitcoin’s critical support zone now lies between $97,041 and $93,806. He also warned that if Bitcoin fails to hold this demand area, it could see a sharp decline to $70,085.
Exchange Reserve Surge Puts Pressure on Bitcoin Price
Another concerning matter has been the BTC exchange reserves, which have soared amid the Bitcoin price surge to its all-time high of $100K. Crypto analyst Ali Martinez reports that savvy investors seem to be preparing for a potential bearish scenario.
Over the past week, more than 33,000 Bitcoin, valued at over $3.23 billion, have been transferred to exchanges. This movement suggests heightened caution and possible selling pressure in the market.
On the other hand, profit booking for BTC has also surged over the past week. On December 23, Bitcoin investors collectively realized over $7.17 billion in profits, highlighting significant market activity and profit-taking during the holiday period, reported Martinez.
Additionally, derivatives data shows that traders aren’t quite optimistic about Bitcoin in the near term. The percentage of traders holding long positions on Bitcoin ($BTC) on Binance has declined sharply, falling from 66.73% to 53.60%.
What Are The Chances Of BTC Reveral To Bullish Rally?
On Christmas day, Bitcoin price breached a crucial support level at $97,300, where 1.51 million wallets collectively purchased approximately 1.49 million BTC, according to analyst Ali Martinez. For bearish sentiment to be overturned, Bitcoin must reclaim this significant support zone and, more importantly, achieve a daily close above the $100,000 mark.
Martinez further added that if the Bitcoin bulls manage to sustain the $100K support, the BTC price can rally to $168,000 as per the Mayer Multiple.
However, BTC price today was 2.2% down and exchanged hands at $96,038. Its market cap stood at $1.9 trillion, and the 24-hour trading volume has shot up 24% all the way to $46 billion. The 24-hour liquidation stands at $55 million with $44 million being in long liquidation.
Analysts Predict BTC Crash By Donald Trump Inauguration
Several crypto market analysts predict further downside for Bitcoin if it loses the crucial support of $95,000. Crypto analyst Tone Vays has expressed concern over Bitcoin ($BTC) trading below the critical $95,000 level. Vays warns that such a move is “very, very bad,” as it significantly raises the likelihood of a correction toward $73,000.
Veteran trader Peter Brandt has cautioned that Bitcoin price may be on the verge of breaking down from a “broadening triangle” pattern. If this occurs, Brandt suggests the price could experience a retracement toward the $70,000 zone.
On the other hand, Fundstrat remains optimistic, projecting that Bitcoin price could reach $250,000 by 2025. However, according to market expert Mark Newton, a pullback to $60,000 may occur before that surge.
Finally, Benjamin Cowen from IntoTheCryptoVerse, speculates that Bitcoin (BTC) may follow a similar price pattern to the Invesco QQQ Trust (QQQ). If this occurs, a flash crash to $60,000 could take place around the inauguration of Donald Trump.
As BTC faces chances of a crash, investors are turning bullish on altcoins. Crypto market analysts believe that the altcoin season isn’t over and that altcoins could see a strong recovery from now onwards. Although, many investors might seem to have given up the hope, the recovery in altcoins could be stronger.
- Is Trump Family, Mr. Beast Buying ASTER Token? Rumors Gain Strength
- Solana ETF Update: Grayscale, Fidelity, Others Files S-1 With Staking, Approval Expected in Two Weeks
- Cyber Hornet Seeks SEC Nod for S&P 500 and XRP ETF
- Cathie Wood’s Ark Invest Eyes Stake in Tether as USDT Issuer Targets $500B Valuation
- Kraken Secures $500M at $15B Valuation, Eyes IPO in 2026
- Solana Price Set for Q4 Surge as Canary Capital ETF Filing Meets Wyckoff Accumulation
- Avalanche Price Could Surge to $50 as Transactions Jump 200%
- CHMPZ Price Prediction:Will This Net-Zero Community Token be the Next Gem?
- Ethereum (ETH) Price Set for a rebound as Whales Accumulate $1.6B ETH and Outflows Hit $622M
- HYPE Price Prediction As Bitwise Files For Hyperliquid ETF – Is $55 In Sight?
- Shiba Inu Price Eyes Recovery From Demand Zone With Burn Rate Soaring Nearly 400%
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
