Bitcoin Entering Second ‘Price Discovery Uptrend’, What’s Ahead?
Cryptocurrency investors are anticipating potential market volatility as a new crypto-friendly government takes office. However, as Bitcoin (BTC) hits its latest all-time high (ATH) of $109,000, some analysts are sharing their bullish predictions.
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Bitcoin hits new highs on Inauguration Day
Last week, Bitcoin surpassed the $100,000 mark for the first time in more than ten days amid bullish expectations for January 20. The flagship cryptocurrency continued to consolidate above this key level over the weekend, driven by U.S. President Donald Trump’s latest crypto moves.
On Friday, the incoming U.S. president surprise Boosting the crypto industry by launching his official Trump meme coin. The coin surged, hitting an all-time high (ATH) of $75, reaching a market capitalization of $15 billion, but faced backlash from the crypto community.
Bitcoin turned the key resistance at $102,000 into a support zone, pushing the price to a one-month high of $106,000, as the coin’s performance eclipsed the market. However, the market saw a 6% correction on Sunday afternoon after the then-incoming first lady launched her meme coin MELANIA.
BTC fell below the $100,000 mark before quickly rebounding to end the week near recently recovered levels. Bitcoin price rises 8.5% to new high ahead of Trump inauguration all time high $109,588.
Daan Crypto Trading famous Bitcoin got off to a good start this week, “with a small gap at the open on CME today, but immediately closed and went straight to a new all-time high,” adding that it will be an interesting week.
Daan also said that today may be a “very volatile day in both directions” for the market, but suggested that investors “focus on expectations for the first quarter, not the next day.”
Will BTC price continue to surge?
Cryptocurrency Analyst Altcoin Sherpa suggestion Bitcoin’s price could see short-term fluctuations depending on Trump’s remarks during his inauguration speech. “If the creation of a Bitcoin strategic reserve were announced, I think Bitcoin would light a God candle and everything would be sent,” he said, adding that a lack of mention could trigger a brief pullback.
Despite potential short-term shocks, some analysts have stressed that Bitcoin is entering a new phase of price discovery. Rector Capital point out“History suggests the first price discovery correction is now over.”
The analyst said that the December pullback was part of BTC’s “post-halving parabolic phase.” Bitcoin Enter Parabolic cycles last approximately 300 days, each following each halving event, with the first price correction in history beginning between weeks 6 and 8 of each parabolic phase.
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Following the recent price action, analysts announced that a second price discovery uptrend is imminent. he explained “Bitcoin is now trying to break out of the $101,000 to $106,000 range, with a daily close above the $106,000 range high resistance, a subsequent post-breakout retest would confirm the breakout and put Bitcoin one step closer to further price discovery One step closer.”
Analyst Crypto Jelle Highlight Bitcoin’s cup-and-handle pattern for years, “looks like Bitcoin wants to end it.” The analyst said the flagship cryptocurrency won’t “have to wait too long,” adding that the long-term target remains $140,000.
As of this writing, Bitcoin is trading at $104,564, down 1% daily.
Featured image from Unsplash.com, chart from TradingView.com
