The surge in the value of Bitcoin (BTC) has led to a dramatic rise in other cryptocurrencies. For instance, Ripple‘s XRP established a new record high following a 16% increase on January 16th. Given the optimistic perspective in the crypto market, here are top explanations as to why Bitcoin’s price could reach $131,000 within the next 26 days.
Reasons Why Bitcoin Price Could Hit $130K Soon
Here are some key reasons that could push Bitcoin price to kickstart a bull rally and hit $130.
Reason 1
It’s anticipated that Donald Trump’s inauguration on January 20 might spark a rally in the cryptocurrency market. This is due to the belief that Trump intends to fulfill his crypto-related promises, such as creating a Strategic Bitcoin Reserve and fostering innovation within the U.S. Some believe that Trump may even grant clemency to Ross William Ulbricht, currently serving a life sentence for Silk Road-related crimes.
Reason 2
Technically speaking, Bitcoin’s rise since its January 13 low has surpassed the $90K to $100K zone that it had been holding steady for approximately 65 days. This movement suggests a shift towards the bulls and implies potential further growth.
Reason 3
In the period between late September and mid-October of 2024, a consolidation occurred that resulted in a comparable price surge. If past patterns recur, Bitcoin may consolidate above its current high of $100K for the next eleven days. After this, there could be a rapid increase leading it to reach the 161.8% Fibonacci extension level at approximately $131,055.
On-chain Data Hints Investors Should Exercise Concerns
Although Bitcoin’s price has soared beyond its previous range top of $100K, the number of daily active addresses (DAA) remains on a downward slope. Since hitting an all-time high in December 2024, DAA has shown lower peaks. At present, it hovers around 773,000.
Bitcoin Whales Transaction Count Decreases
On January 13, when Bitcoin fell beneath $90K, large investors (whales) seized the opportunity to buy at reduced prices. However, it’s important to note that transactions valued at $100K or more have consistently been declining since then. This persistent downtrend suggests a decrease in overall interest.
Even though the long-term signs suggest a potential Bitcoin price surge to $130K within 26 days, it’s crucial for investors to exercise caution due to the uncertainty surrounding the immediate future. The short-term perspective, as indicated by on-chain data, suggests a cautious approach.
Key BTC Support Levels If Bulls Fail
Even if many people predict that Bitcoin’s price will rise, it’s crucial for investors to stay vigilant and prepare for a situation where this positive forecast doesn’t come true.
If the price of Bitcoin falls below $100K, it might lead to its return within the specified range. Important levels to monitor during this time are $96,850, which was the most actively traded level over the last 65 days. The range low at $92,800 could be a potential turning point. In a pessimistic outlook, Bitcoin might retest support levels at $89,095 and $85,800.
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2025-01-17 12:05