Top Reasons Bitcoin Price Could Hit $130K in 26 Days

The recent uptick in Bitcoin (BTC) has caused altcoins to explode. Ripple’s XRP, for example, has set up a new all-time high after 16% rally on January 16. With such a bullish crypto market outlook, here are top reasons why Bitcoin price could hit $131,000 in the next 26 days. 

Reasons Why Bitcoin Price Could Hit $130K Soon

Here are some key reasons that could push Bitcoin price to kickstart a bull rally and hit $130. 

Reason 1

President-elect Donald Trump’s inauguration on January 20 is speculated to be one of the main events that could catalyze a crypto market rally. This is because many expect Trump to execute his crypto promises, which include a Strategic Bitcoin Reserve and making the US the center of innovation. Many believe that Trump could also pardon Silk Road’s Ross William Ulbricht, who is imprisoned for life.

Reason 2

From a technical standpoint, Bitcoin’s rally from the January 13 low has pushed it beyond the $90K to 100K range that BTC has been consolidating for the past 65 days. This development has tilted the odds in bulls’ favor and hints at an upcoming rally.

Reason 3

The consolidation between late September 2024 and mid-October 2024 led to a similar breakout.If history repeats, then Bitcoin could consolidate above the range high of $100K for the next 11 days. Following this, an exponential rally could unfold, sending it toward the 161.8% Fibonacci extension level at $131,055. 

On-chain Data Hints Investors Should Exercise Concerns

Despite the recent breakout of BTC price above the range high of $100K, the daily active addresses (DAA) metric continues to trend lower. Since the all-time high in December 2024, the DAA has produced lower highs. Currently, the metric hovers around 773,000.

Bitcoin Whales Transaction Count Decreases

The recent drop below $90K on January 13 attracted whales buying the dips. But overall, the transactions worth $100K or more have continued to decrease. This downtrend indicates that interest is dropping. 

While long-term technicals are bullish and Bitcoin price could hit $130K in 26 days, investors need to be cautious. However, the short-term outlook remains uncertain with on-chain metrics pointing to a cautious outlook.

Key BTC Support Levels If Bulls Fail

Regardless of bullish Bitcoin price predictions, investors need to keep an eye out for a scenario where this outlook fails to manifest. 

A failure to stay above $100K could lead to a reentry into the range. In such a case, the key support levels to watch include $96,850, which is the highest volume traded level for the past 65 days. Beyond this, the range low at $92,800 will be key area for a potential reversal. In a worst-case scenario, Bitcoin could revisit $89,095 and $85,800 support floors.