Is Bitcoin Price Crash To $60K Imminent Before Donald Trump Inauguration?

by

As a seasoned crypto investor with more than a decade of experience under my belt, I can’t help but feel a mix of anticipation and trepidation as I watch Bitcoin‘s price action these days. The recent surge to $100K was nothing short of exhilarating, but the subsequent correction back to $95,000 has left me with a familiar sense of unease.

Bitcoin’s price is currently experiencing significant downward pressure following its rejection at the $100K mark over Christmas. Despite bullish efforts to maintain the important support level of $95K, recent market trends and analyst assessments suggest that the likelihood of a Bitcoin price drop to around $60K by Donald Trump’s inauguration on January 19 is quite high.

On-Chain Data Flashes Bitcoin Price Crash Signals

After surging towards $100K, the demand for Bitcoin weakened significantly, causing its price to dip back down to around $95,000. Furthermore, on-chain analysis indicates that the current momentum may not be strong enough to sustain another rally in Bitcoin’s price.

According to well-known crypto expert Ali Martinez, the crucial support level for Bitcoin currently ranges from approximately $97,041 to $93,806. He further cautioned that if Bitcoin doesn’t maintain this demand area, it could experience a steep drop to around $70,085.

Exchange Reserve Surge Puts Pressure on Bitcoin Price

A noteworthy issue arising is the growing Bitcoin exchange reserves, as they have increased significantly during the Bitcoin price spike reaching an unprecedented $100K. According to crypto expert Ali Martinez, shrewd investors appear to be anticipating a possible downturn in the market.

During the last seven days, approximately 33,000 Bitcoins, worth over $3.23 billion, have been moved to cryptocurrency exchanges. This activity could indicate increased precaution and potential selling pressure within the market.

Additionally, there’s been a spike in Bitcoin sell-offs for profit, with investors realizing approximately $7.17 billion in gains last week. This indicates high market engagement and profit-taking behavior over the festive season as reported by Martinez.

Furthermore, it appears that traders are not overly hopeful about Bitcoin’s short-term prospects, as indicated by the drop in long positions on Bitcoin ($BTC) on Binance. The proportion of traders who hold long positions on Bitcoin has significantly decreased, falling from 66.73% to 53.60%.

What Are The Chances Of BTC Reveral To Bullish Rally?

On Christmas day, the price of Bitcoin broke through an important resistance point at $97,300, which was where around 1.51 million digital wallets had collectively bought about 1.49 million Bitcoins, as pointed out by analyst Ali Martinez. For the bearish sentiment to be reversed, Bitcoin needs to recapture this significant support area and, most crucially, end the day with a closing price above $100,000.

Martinez also pointed out that should the Bitcoin supporters successfully maintain the price above $100K, a potential surge towards $168,000 could occur based on the Mayer Multiple.

Today, Bitcoin’s price decreased by 2.2%, reaching a value of $96,038. Its market capitalization stood at an impressive $1.9 trillion. The 24-hour trading volume increased significantly by 24% to approximately $46 billion. Over the past 24 hours, there have been liquidations totaling $55 million, with $44 million of those being long liquidations.

Analysts Predict BTC Crash By Donald Trump Inauguration

As a crypto market analyst myself, I’ve noticed a potential concern: if Bitcoin ($BTC) fails to hold above the crucial support level of $95,000, it might signal a further downside. In such a scenario, as pointed out by fellow analyst Tone Vays, we could be looking at a correction towards the $73,000 mark. He emphasizes that this dip below $95,000 is “very, very bad,” as it substantially increases the probability of this correction occurring.

Seasoned investor Peter Brandt has issued a warning about Bitcoin’s potential for a price drop. He believes that Bitcoin might soon break away from a “widening wedge” pattern, which could lead to a fall in its value towards the $70,000 region if it does so.

Meanwhile, Fundstrat maintains its positive outlook, predicting that the value of Bitcoin might soar to $250,000 by 2025. Nevertheless, per market expert Mark Newton’s forecast, a dip down to $60,000 could happen prior to this predicted surge.

Ultimately, as per Benjamin Cowen from IntoTheCryptoVerse’s prediction, Bitcoin (BTC) might mirror the price trend of the Invesco QQQ Trust (QQQ). This could potentially lead to a sudden drop in value, reaching around $60,000, around the time of Donald Trump’s inauguration.

In light of potential downturn for Bitcoin, there’s growing optimism among investors regarding alternative cryptocurrencies. Market analysts foresee that the period favoring altcoins is far from over and anticipate a substantial rebound for these digital assets moving forward. Despite some investors appearing to have lost hope, the recovery in altcoins may prove to be quite robust.

Read More

2024-12-27 09:56