Bitcoin enters second ‘price discovery uptrend’: what lies ahead?
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Bitcoin (BTC) continues to capture investor attention as it hits a new all-time high (ATH) of $109,588 during Inauguration Day. Amid expectations of increased market volatility, analysts are projecting significant price action for the flagship cryptocurrency.
Bitcoin hits new heights on Trump’s inauguration day
Last week, Bitcoin surged past $100,000, driven by bullish market sentiment ahead of January 20. Over the weekend, BTC consolidated above this key level, fueled by crypto-friendly moves from President Donald Trump. Notably, the launch of the official TRUMP memecoin propelled market activity, with the token reaching a $75 ATH and a $15 billion market capitalization.
Despite initial enthusiasm, market dynamics shifted when the First Lady introduced her MELANIA memecoin, leading to a 6% correction for BTC. However, Bitcoin quickly recovered, closing the week near $100,000 and ultimately rallying to a new ATH of $109,588 on Monday.
Crypto trader Daan Crypto Trades noted the market’s strong opening, stating, “BTC opened up with a small CME gap today but closed that straight away and went straight to new all-time highs.” He cautioned investors to prepare for volatility, suggesting a focus on long-term expectations for Q1 rather than day-to-day fluctuations.
What’s next for BTC?
Short-term volatility
Analyst Altcoin Sherpa speculates that President Trump’s Inauguration speech could drive market direction. A potential announcement of a Strategic Bitcoin Reserve might trigger a sharp rally, while a lack of mention could lead to a temporary pullback.
Entering a new price discovery phase
Rekt Capital highlighted that Bitcoin is entering its second Price Discovery Uptrend. He explained that the December retrace marked the end of the first correction within BTC’s “post-halving Parabolic Upside Phase.” Historically, Bitcoin enters parabolic growth phases lasting approximately 300 days after halving events, with early corrections occurring between Weeks 6 and 8 of each phase.
Technical outlook
According to Rekt Capital, Bitcoin’s breakout above the $106,000 resistance level, followed by a successful retest, could confirm the start of the next leg up in the price discovery process. Crypto Jelle pointed to BTC’s multi-year cup-and-handle pattern, suggesting that a breakout toward a long-term target of $140,000 could be imminent.
Current market status
As of this writing, Bitcoin trades at $104,564, reflecting a 1% drop in the daily timeframe. Despite this minor decline, analysts remain optimistic about BTC’s trajectory, citing its historical performance during price discovery phases and favorable macroeconomic conditions. With ongoing speculation surrounding Trump’s crypto policies, investors are closely monitoring BTC’s movement in the coming days.
Bitcoin hits new heights on Trump’s inauguration day
Last week, Bitcoin surged past $100,000, driven by bullish market sentiment ahead of January 20. Over the weekend, BTC consolidated above this key level, fueled by crypto-friendly moves from President Donald Trump. Notably, the launch of the official TRUMP memecoin propelled market activity, with the token reaching a $75 ATH and a $15 billion market capitalization.
Despite initial enthusiasm, market dynamics shifted when the First Lady introduced her MELANIA memecoin, leading to a 6% correction for BTC. However, Bitcoin quickly recovered, closing the week near $100,000 and ultimately rallying to a new ATH of $109,588 on Monday.
Crypto trader Daan Crypto Trades noted the market’s strong opening, stating, “BTC opened up with a small CME gap today but closed that straight away and went straight to new all-time highs.” He cautioned investors to prepare for volatility, suggesting a focus on long-term expectations for Q1 rather than day-to-day fluctuations.
What’s next for BTC?
Short-term volatility
Analyst Altcoin Sherpa speculates that President Trump’s Inauguration speech could drive market direction. A potential announcement of a Strategic Bitcoin Reserve might trigger a sharp rally, while a lack of mention could lead to a temporary pullback.
Entering a new price discovery phase
Rekt Capital highlighted that Bitcoin is entering its second Price Discovery Uptrend. He explained that the December retrace marked the end of the first correction within BTC’s “post-halving Parabolic Upside Phase.” Historically, Bitcoin enters parabolic growth phases lasting approximately 300 days after halving events, with early corrections occurring between Weeks 6 and 8 of each phase.
Technical outlook
According to Rekt Capital, Bitcoin’s breakout above the $106,000 resistance level, followed by a successful retest, could confirm the start of the next leg up in the price discovery process. Crypto Jelle pointed to BTC’s multi-year cup-and-handle pattern, suggesting that a breakout toward a long-term target of $140,000 could be imminent.
Current market status
As of this writing, Bitcoin trades at $104,564, reflecting a 1% drop in the daily timeframe. Despite this minor decline, analysts remain optimistic about BTC’s trajectory, citing its historical performance during price discovery phases and favorable macroeconomic conditions. With ongoing speculation surrounding Trump’s crypto policies, investors are closely monitoring BTC’s movement in the coming days.