$BTC

Bitcoin (BTC) has recently experienced significant price fluctuations, influenced by various market dynamics and the anticipation of President-elect Donald Trump's upcoming inauguration.

Current Trend Analysis:

Recent Performance: Bitcoin surpassed the $100,000 mark earlier this month, reaching approximately $102,357 on January 6, 2025. However, it has since retracted to around $94,522, marking a decline of about 10% from its recent peak.

Market Influences: The decline is attributed to stronger-than-expected economic data, leading to increased U.S. Treasury yields and concerns over potential delays in Federal Reserve interest rate cuts. Additionally, significant outflows from spot Bitcoin ETFs indicate cautious sentiment among institutional investors.

Impact of Trump's Inauguration:

Market Sentiment: The anticipation of President-elect Donald Trump's inauguration has generated optimism within the cryptocurrency market. Trump's pro-crypto stance, including promises to create a "strategic national bitcoin reserve" and prevent the establishment of a U.S. Central Bank Digital Currency (CBDC), has bolstered investor confidence.

Potential Price Movements: Analysts suggest that Bitcoin's price could experience increased volatility surrounding the inauguration. Some predict a dip to the $80,000–$85,000 range due to market adjustments, while others anticipate a post-inauguration rally, potentially driving Bitcoin to new all-time highs.

Key Levels to Watch:

Support Levels: Key support levels are identified at $92,000, $87,000, and $74,000, where longer-term investors might consider accumulating positions.

Resistance Levels: Resistance is anticipated at the psychological $100,000 mark and the significant $106,000 level, where traders might take profits.