The price of Bitcoin (BTC) settled above the $102,000 level on Tuesday after hitting an all-time high of $109588 the previous day. Santiment data shows that BTC prices were rapidly corrected, as social media showed great greed and fear of missing out on the opportunity (FOMO) among traders in Bitcoin after President Donald Trump’s inauguration. Furthermore, Bitfinex analysts told FXStreet that Trump’s inauguration could be a news-selling event.
Bitcoin swings as Trump’s inaugural speech ignores Bitcoin
Bitcoin hit an all-time high (ATH) of $109588 on Monday, in the early hours of Donald Trump’s inauguration. However, after the event, the price of Bitcoin quickly fell 6.68% from an all-time high, closing at $102,260. Trump’s inaugural address fueled this price fluctuation, which ignored Bitcoin, Bitcoin liquidations totaled $253.45 million in the past twenty-four hours, and the largest single liquidation order was on the Binance – BTCUSDT, $12.54M.
Santiment data shows that social media has shown great greed and fear of missing out among Bitcoin traders. The chart below shows the signals on X, Reddit, Telegram, 4Chan and Farcaster. Historically, prices have moved in the opposite direction to crowd expectations, especially in the short term.
In the case of Bitcoin, signals of rising prices by the crowd on Monday pointed to sell signals. A similar move occurred in mid-December when the crowd’s mention of higher prices led to a short-term drop in bitcoin prices.
Monday’s Bitfinex alpha report highlights that Bitcoin’s recovery last week was primarily driven by aggressive spot buying. The chart below shows a sharp rise in the Delta Spot Cumulative Volume Index
Bitcoin Price Forecast: Bitcoin Fails to Maintain $109K Level
Bitcoin hit a new historic high (ATH) of $109,588 on Monday, but quickly fell 6.68% from that level, closing at $102,260. At the time of writing this article on Tuesday, it hovers above $102,000.
If Bitcoin continues its bullish momentum and breaks its historic high, it could stretch above the $125K mark, which is calculated by the 141.40% Fibonacci rollover level (drawn from the November 4 low of $66,835 to Monday’s historic high of $109,588) at $127,287.
The Relative Strength Index (RSI) on the daily chart indicates 58, above its neutral level of 50, indicating a rise in bullish momentum. In addition, the Moving Average Convergence and Divergence Index (MACD) reversed a bullish crossover on January 15, giving a buy signal and suggesting the uptrend continues.
However, if Bitcoin faces a pullback and closes below $100,000, the dips could extend to retest the next support level at $90,000.
When the Delta cumulative volume indicator rises aggressively, it indicates that buying pressure is dominating the spot market. This suggests that buyers are actively raising ask prices, indicating strong demand and potential bullish momentum for the asset.
The report also shows that a significant portion of the buying volume originated from US-based exchanges, with the buying pattern mirroring the pattern of past purchases of Micro Strategy and exchange-traded funds (ETFs), reinforcing the view that institutional demand remains strong.
“However, the spot buying pressures we saw last week may require some time for bids to renew, which could lead to a brief pullback before resuming bullish momentum.”
Crypto prices fall after Trump’s inauguration
Bitcoin, other cryptocurrencies and even a new coin named after Donald Trump fell on Tuesday, after the first set of policies adopted by the US president after his inauguration did not refer to this asset class.
Bitcoin, the world’s largest cryptocurrency, reached an all-time high of US$109,071 (RM488,000) on Monday as Trump took the oath as the 47th U.S. president. It later lost some of those gains, with its last recorded price at $101,705.40.
Traders pushed the Trump-branded meme coin, launched on Friday night, to a peak of $74.59 on Monday, which brought its market value above $14 billion. By its latest update, the coin traded at $34.4, marking a sharp drop from its peak. At launch, it had an initial price of $6.5.
Trump’s inaugural address on Monday was accompanied by a raft of executive orders and plans related to trade tariffs, immigration, energy liberalization and even an exemption from popular Chinese short video app TikTok.
But he did not mention cryptocurrencies, disappointing an industry that had been excited for months that the pro-crypto president would begin a radical change in U.S. policies toward the volatile asset class.
“I think in the short term, there’s a chance that this will be a news-selling event,” said Matthew Depp, chief investment officer at crypto asset management firm Astronaut Capital, adding that crypto investors were expecting to introduce some executive measures during Trump’s first day in office.
“The market has some great expectations regarding Bitcoin’s strategic reserve and deregulation around digital assets, but these developments are likely to be fed drip over a series of months rather than days,” Depp said. Bitcoin has already fallen… We expect more volatility here and there is likely to be a heavy sell-off.
