- Summary:
- Bitcoin price dropped sharply from historic highs to sub-$100k on Monday. We discuss its likely trajectory after a return to $105k support.
Bitcoin Price rebounded on Tuesday as traders resumed their bullish positions on the coin after Monday’s profit-taking. The crypto coin rose to record highs of $109,358 on Donald Trump’s inauguration day, but slumped to sub-$100k levels later in the day. BTC traded at $105,060 at the time of writing and was up by 2.8% on the daily chart, signaling a likely continuation of its uptrend in the coming days.
Trump did not mention his administration’s crypto policy during his inauguration, an inaction that potentially slighted some crypto enthusiasts. However, he gave no indication that he had changed his stance on the industry either, which safeguards the upbeat sentiment created by his election win.
The inauguration day frenzy initially sent $TRUMP and $MELANIA, the two meme coins backed by President Trump and First Lady Melania to double-digit rallies. However, the two were also impacted by Trump’s silence, with $TRUMP going down by more than 30 percent at some point.
Trump’s second term in office is a milestone moment for the cryptocurrency industry as it marks a significant shift in the regulatory environment. Gary Gensler resigned from his position as the Chairman of Securities and Exchange Commission (SEC) on the day Trump took office. Bitcoin price is likely to be stirred up by a friendlier regulatory body, which could attract greater institutional investment in crypto.
Bitcoin Price Prediction
Bitcoin price pivots at $102,740 and the momentum signals the continuation of the upside. With the buyers in control, the coin will likely head upward and meet the first resistance at $105,235. However a stronger momentum will enable a breach past that mark and potentially send BTC higher to test $107,640.
On the other hand, moving below $102,740 will shift the momentum to the downside. In that case, BTCUSD is likely to go to the first support at $100,440. The upside narrative will be invalidated by a break below that level. Also, an extended control by the sellers could send Bitcoin price lower to test $97,695.
