- summary:
- The price of Bitcoin fell sharply from its historic highs to below $100,000 on Monday. We discuss its possible path after returning to $105K support.
Bitcoin prices rebounded on Tuesday as traders resumed their bullish positions on the currency after taking profits on Monday. The cryptocurrency rose to record levels of $109,358 on Donald Trump’s inauguration day, but fell to levels below $100,000 later in the day. BTC was trading at $105,060 at the time of writing and was up 2.8% on the daily chart, indicating a potential continuation of its upward trend in the coming days.
Trump did not mention his administration’s cryptocurrency policy during his inauguration, an inaction that likely turned off some cryptocurrency enthusiasts. However, he has given no indication that he has changed his stance on the industry either, maintaining the optimistic sentiment created by his election victory.
The Inauguration Day frenzy initially sent $TRUMP and $MELANIA, the cryptocurrencies backed by President Trump and First Lady Melania, into double-digit rallies. However, the two were also affected by Trump’s silence, with Trump’s price falling more than 30% at one point.
Trump’s second term in office is a historic moment for the cryptocurrency industry as it represents a major shift in the regulatory environment. Gary Gensler resigned from his position as Chairman of the Securities and Exchange Commission (SEC) on the day Trump took office. The price of Bitcoin is likely to be raised by a friendlier regulatory body, which may attract more institutional investment in cryptocurrencies.
Bitcoin price forecast
Bitcoin price is trading at $102,740 and momentum indicates a continuation of the uptrend. With buyers in control, the coin is likely to head higher and face the first resistance at $105,235. However, stronger momentum would enable a breakout of this mark and potentially send BTC higher to test $107,640.
On the other hand, a move below $102,740 would shift the momentum to the downside. In this case, BTC/USD is likely to go to the first support level at $100,440. The bullish narrative will be invalidated by a break below this level. Also, expanded control by sellers could send Bitcoin price lower to test $97,695.
