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With the new crypto-friendly administration taking office, crypto investors are anticipating a potentially volatile market. However, some analysts shared their bullish outlook as Bitcoin (BTC) reached an all-time high (ATH) of $109,000.
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Bitcoin reaches a new ATH on opening day
Last week, Bitcoin crossed the $100,000 mark for the first time in more than ten days amid bullish expectations for January 20. The major cryptocurrency continued to strengthen above this key level over the weekend, supported by US President Donald Trump’s recent cryptocurrency moves.
On Friday, the incoming US president surprised the cryptocurrency industry by launching his own official Trump coin. The token has seen a massive rise, reaching an all-time high (ATH) of $75 and a market cap of $15 billion but has faced significant backlash from the cryptocurrency community.
As the token surpassed the market, Bitcoin turned the key resistance level of $102,000 as a support area, 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 meme coin, Melania.
Bitcoin fell below the $100,000 level before quickly recovering, closing the week near the recently recovered level. Ahead of Trump’s inauguration, Bitcoin’s price jumped 8.5% to a new all-time high of $109,588.
Dan crypto trades male BTC has a good start to the week after it “opened with a small gap on the CME today but immediately closed that and went straight to new all-time highs,” adding that it will be an interesting week.
Dunn also noted that today will likely be a “very volatile day in both directions” for the market, but advised investors to “focus on what you expect for the first quarter and not the next day.”
Will BTC price continue to rise?
Cryptocurrency analyst Altcoin Sherpa Suggested The price of Bitcoin may witness fluctuations in the short term depending on Trump’s comments during his inauguration speech. “If the Bitcoin Strategic Reserve is announced, I think Bitcoin will put out a divine candle, and it will send everything out,” he said, adding that not mentioning it could start a temporary decline.
Despite potential short-term tremors, some analysts have highlighted that Bitcoin is entering a new phase of price discovery. React Capital male“History suggests that the first price discovery correction is now over.”
According to the analyst, the December correction was part of BTC’s “post-halving parabolic rally phase.” Bitcoin enters a parabolic period lasting approximately 300 days, each cycle after each halving event, with the first price correction historically starting 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 lies ahead. he He explained “Bitcoin is now attempting to break out from the daily closing range of $101K-$106K above the high resistance of the $106K range followed by a post-breakout retest that would confirm the breakout and bring Bitcoin one step closer to additional price discovery.”
Jelly crypto analyzer Highlight BTC’s multi-year cup and handle pattern, which “looks like Bitcoin wants to end it.” The major cryptocurrency “won’t wait much longer,” the analyst noted, adding that the long-term target remains $140,000.
As of this writing, Bitcoin is trading at $104,564, which is a 1% decline on the daily time frame.
Featured image from Unsplash.com, chart from TradingView.com
