With a new administration that is supportive of cryptocurrencies in power, investors in the crypto market are bracing for potential volatility. Despite the uncertainty, some experts have shared optimistic forecasts as Bitcoin (BTC) reached a new all-time high (ATH) of $109,000.
Bitcoin Achieves Record High On Presidential Inauguration Day
In the lead-up to January 20, Bitcoin surpassed the $100,000 mark for the first time in over ten days, fueled by positive expectations surrounding the day. The leading cryptocurrency maintained its position above this crucial threshold during the weekend, driven by recent developments from US President Donald Trump related to the crypto market.
On Friday, the incoming US President made waves in the crypto industry by launching his official TRUMP memecoin. The token experienced a significant surge, reaching an all-time high (ATH) of $75 with a market capitalization of $15 billion, although it faced criticism from the crypto community.
Amidst the buzz surrounding the TRUMP token, Bitcoin transformed the previous $102,000 resistance level into a support zone, sending its price soaring to a one-month high of $106,000. However, a 6% pullback occurred on Sunday following the introduction of the memecoin MELANIA by the incoming First Lady.
BTC briefly dipped below $100,000 before quickly rebounding, ultimately ending the week near the recently surpassed level. Prior to Trump’s inauguration, Bitcoin surged by 8.5% to reach a new all-time high of $109,588.
Daan Crypto Trades noted a positive start for Bitcoin at the beginning of the week, stating that it “opened up with a small CME gap today but closed that straight away and went straight to new all-time highs.” He suggested that the upcoming week would be intriguing for investors.
Daan also anticipated significant volatility in the market on the current day, advising investors to focus on their expectations for the first quarter rather than daily fluctuations.
Potential For Continued Growth in BTC Price?
Crypto analyst Altcoin Sherpa suggested that BTC’s price could experience short-term fluctuations depending on comments made by Trump during his Inauguration speech. He theorized that the announcement of a Strategic Bitcoin Reserve could lead to a significant price surge.
Despite the possibility of temporary market shakeouts, some analysts believe that Bitcoin is entering a new phase of price discovery. Rekt Capital stated, “History indicates that the initial Price Discovery Correction has concluded.”
According to the analyst, the dip in December was part of BTC’s “post-halving Parabolic Upside Phase.” Bitcoin typically enters a parabolic period lasting around 300 days following each Halving event, with the first price correction historically occurring between Weeks 6 and 8 of each cycle.
Following recent price movements, the analyst projected that the second Price Discovery Uptrend is on the horizon. He explained that “Bitcoin is currently attempting to break out from its $101k-$106k range. A Daily Close above the $106k Range High resistance followed by a post-breakout retest would confirm the breakout, bringing Bitcoin closer to additional Price Discovery.”
Analyst Crypto Jelle noted Bitcoin’s multi-year cup and handle pattern, speculating that the flagship cryptocurrency is poised for significant growth. The long-term target remains at $140,000.
At the time of writing, Bitcoin is trading at $104,564, representing a 1% decline in the daily timeframe.
