Highlights
With President-elect Donald Trump’s inauguration only five days away, the crypto markets have been uncertain. One effect of this is the recent crash that pushed Bitcoin (BTC) price below $90,000. While some traders expect a much deeper correction, others believe it is the end of the downtrend or pullbacks.
Bitcoin price today is up 3.82% and trades at $100,170.0 after recovery from the January 13 crash. This move has caused Ethereum (ETH) and (XRP) to also shoot up 6.73% and 7%, respectively.
Bitcoin price chart today shows a strong recovery after dipping below the $90,000 psychological level on January 13.
*bitcoin price updated as of 11 PM.
Technically, the inauguration on January 20 should be bullish, but many hint that investors who opened long positions before the election results would likely close their positions here, leading to a Bitcoin price correction. Until now, this has been true. Bitcoin crashed nearly 14% since January 6. However, the other side of the argument is that January 20 is a buy-the-news event due to the changes he will implement that favor crypto.
President-elect Donald Trump’s pre-election campaign and his talks since then have proved that he is set to become the most pro-crypto president ever. Anticipating this, the crypto markets triggered a massive bull run after Trump won the 2024 US elections. These cohort believe markets will continue to rally after January 20.
As noted in a previous article, Trump’s cabinet selection contains many pro-crypto advisors. Furthermore, reports have surfaced that Donald Trump’s first agenda as the 47th president of the US would be crypto-related. Many believe he could free Ross Ulbricht, approve the strategic Bitcoin reserve for the US, or not discuss any crypto-related regulations. This has caused uncertainty, leading to a sideways movement in Bitcoin price. Investors second-guess whether the ongoing recovery will lead to a bull run or more chop.
Coiner-Yadox, a popular crypto analyst, posted his take on Bitcoin’s price action. According to the expert, BTC’s short-term outlook is bearish. Elliot Wave analysis shows that waves 2 and 3 are complete, and wave 4’s upside is capped around $99,400. Completing the fifth wave could send Bitcoin as low as $85,965.
The analyst notes,
“*if* $btc is denied around 99420 after an abc up for wave 4, target would probably be 86666-88888.”
According to Coiner-Yadox, this correction thesis will be invalidated if Bitcoin price climbs “above102k.”
Technical analysis shows Bitcoin price is hovering in a range, extending from roughly $99,500 to $92,300. After a brief dip below $90K, BTC has shown strong recovery rally that reclaimed this value area, where 70% of the volume was traded in the past two months, leading to a push up to $97K.
As price hovers here, investors must note key support levels around $95,936, $94,305, $92,501. As long the upcoming BTC correction does not breach $92,300, the outlook will remain bullish. Under these conditions, the aforementioned levels are good buy zones that could trigger a reversal.
A dip to the aforementioned buy zone could lead to a strong bounce. The next key level to book profit is $97,150. Overcoming the value area high of $99,500 will signal a bullish outlook. Bitcoin price prediction, in this case, hint it could propel Bitcoin to $101,500, $101,300 and $103,623. These are strategic take-profit levels. In a highly bullish case, BTC could revisit the current ATH of $108,421.
The impending inauguration of President-elect Donald Trump has sparked uncertainty in the crypto markets, with Bitcoin’s price experiencing a recent crash below $90,000. Despite this, many experts believe that Trump’s pro-crypto stance and potential policy changes could lead to a bullish outlook for Bitcoin. With key support levels and strategic targets identified, investors eagerly await the outcome of Trump’s inauguration and its impact on the crypto market.
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This content is purely for educational purposes and should not be considered as financial advice. Do your own research before investing in any crypto platform and only invest the amount you can afford to lose.
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