- Summary:
- Bitcoin price has declined by more than four percent in the last month amid weak metrics but there's a good chance a reversal isn't far off.
Bitcoin price extended its downside on Thursday as it traded at $93,200 after losing 1.9% of its value at the time of writing. The crypto market bellwether faces headwinds as investors ease their positions on high-risk assets amid news of fewer Fed interest rate cuts this year.
BTC has declined by 4.2% in the last month and is on course to register its first successive three-day losing streak for the first time since December 23. However, the coin’s traded volume declined by 6% in the 24 hours preceding this writing. That signals that investors are opting to hold on to their BTC coins, a trend that could weaken the downward momentum.
Bitcoin price could get fresh impetus after Trump’s inauguration
Despite its recent decline, Bitcoin’s daily chart shows that the coin has held above $91,000 since mid-November 2024. Therefore, a near-term reversal could still be on the cards if it holds above that support. Despite cryptocurrencies having the backing of US President-elect Donald Trump, institutional adoption of Bitcoin has been slow, limiting the coin’s upside.
The Bitcoin price downside is accentuated by a decline in its spot ETF performance. The coin saw $568 million in outflows on Wednesday, bringing its outflows in the last week to over $1.1 billion. A continuation of the trend could add downward pressure on BTC price.
However, the coin could get a fresh impetus after Trump’s post-inauguration, when changes will take effect at the Securities and Regulatory Commission, headlined by the exit of Chairman Gary Gensler. Also, Commissioner Jaime Lizarraga will step down on January 17th.
Bitcoin Price Prediction
Bitcoin price pivots at $94,125 and the downside will prevail if resistance persists at that level. The first support is likely to be at $92,680. However, a stronger downward momentum could break below that level and test $91,930.
On the other hand, moving above $94,125 will shift the momentum to the upside. If that happens, BTC price will likely move higher to the first resistance at $95,150. The downside narrative will be invalid if the coin breaches that barrier. Also, the momentum could extend the upside and test $96,100.
