After the inauguration of Donald Trump as US President, the bitcoin market showed strong volatility. On the day of the inauguration, the price of the cryptocurrency fluctuated and reached a new high of $109581.17, with a difference of 9.2% between the minimum and maximum price. However, bitcoin is currently trading at a lower price of around $102030. This drop is due to the fact that many investors took advantage of the hype surrounding the inauguration to take profits, leading to a short-term price correction. The inauguration was also a catalyst to cool the market, which may have overheated due to speculative interest.
Bitcoin will grow again in the future. The US authorities have now started working on the regulation of cryptocurrencies, which could have a long-term impact on the market. The Securities and Exchange Commission (SEC) plans to set clear boundaries for its authority and registration requirements, which will create a more stable legal environment for bitcoin. This, in turn, could increase investor confidence and help boost cryptocurrency prices.
In addition, Crypto.com announced the launch of an institutional platform in the US that will add more than 300 trading pairs. This could increase liquidity and demand for bitcoin, creating more opportunities for its price to rise. Overall, the move towards looser regulation and increased institutional investment could create a more stable cryptocurrency market.
Coin Days Destroyed (CDD) rates have also decreased recently, indicating less selling pressure. This means that investors are becoming more inclined to hold their assets for the long term, which is characteristic of periods of price consolidation.
From a technical point of view, on January 20th the market experienced a pullback after making a new high and is now consolidating. The RSI and MACD indicators do not show a change in the trend to bearish, but only a weakening of the bullish sentiment in the short term.
Current recommendation:
Buy at the current price. Take profit – 106772.00. Stop loss – 97340.00. Partial profit taking is recommended at 103345.24.
