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With the new crypto-friendly government taking office, crypto investors expect a likely volatile market. However, some analysts shared their bullish predictions as Bitcoin (BTC) hit its latest all-time high (ATH) of $109,000.
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Bitcoin Hits New ATH on Inauguration Day
Last week, Bitcoin rose past the $100,000 mark for the first time in more than ten days, amid bullish expectations from January 20. The flagship crypto continued to consolidate above this key level over the weekend, fueled by US President Donald Trump’s latest crypto moves.
On Friday, the incoming US president surprised the crypto industry by launching his official TRUMP memecoin. The token soared, reaching an all-time high of $75 (ATH) and a market cap of $15 billion, but faced significant backlash from the crypto community.
As the token overshadowed the market, Bitcoin turned the key resistance level at $102,000 as a support zone, pushing the price to a one-month high of $106,000. However, the market saw a 6% correction on Sunday afternoon after the then First Lady launched her memecoin, MELANIA.
BTC fell below the $100,000 mark but quickly recovered to end the week around the recently regained level. Ahead of Trump’s inauguration, Bitcoin’s price rose 8.5% to a new all-time high of $109,588.
Daan Crypto Trades noted BTC’s strong start to the week after it “opened today with a small CME gap but immediately closed and went straight to new all-time highs” added that it will be an interesting week.
Daan also indicated that today was likely to 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 on the next day.”
BTC Price Keeps Rising?
Crypto analyst Altcoin Sherpa suggested that the price of BTC could show volatility in the short term depending on Trump’s comments during his inauguration speech. “If a Strategic Bitcoin Reserve is announced, I think BTC will put a candle to it and send everything,” he said, adding that a lack of mention could cause a temporary pullback.
Despite the potential near-term shakeouts, some analysts emphasized that Bitcoin is entering a new price discovery phase. Rekt Capital declared“History suggests that this first price discovery correction is now over.”
According to the analyst, the December retrace was part of BTC’s ‘post-halving parabolic upside phase’. Bitcoin enters a parabolic period lasting approximately 300 days each cycle following each halving event, with the first price correction historically starting between weeks 6 and 8 of each parabolic phase.
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Following the recent price action, the analyst announced that the second Price Discovery Uptrend is on the horizon. He explained that “Bitcoin is now trying to break out of its $101k-$106k range. Daily Close above the $106k range. High resistance followed by a retest after the breakout would confirm the breakout and move Bitcoin one step closer to additional price discovery.”
Crypto Analyst Jelle marked BTC’s multi-year cup-and-handle pattern, which “seems like Bitcoin wants to end it.” The analyst suggested that the flagship crypto won’t wait “much longer,” adding that the long-term target remains $140,000.
At the time of writing, Bitcoin is trading at $104,564, down 1% in the daily time frame.
Featured image from Unsplash.com, chart from TradingView.com