Bitcoin (BTC) may be gearing up for a significant price movement in the coming weeks, as analysts suggest that the asset has yet to fully price in the U.S. government’s pro-crypto stance. While short-term volatility remains a concern, the long-term outlook for Bitcoin continues to be positive.
Bitcoin’s Trading Range Suggests Imminent Breakout
According to a recent Bitfinex markets report, Bitcoin has been trading within a 15% price range since mid-November, fluctuating around $90,000. Analysts point out that historically, price consolidations within a 15-20% range tend to resolve decisively within 80 to 90 days, suggesting that a major move is on the horizon.
Despite macroeconomic turbulence—including U.S. President Donald Trump’s recent tariff impositions on Canada, Mexico, and China—Bitcoin has maintained its resilience, holding above the critical $70,000 level. Trump’s tariff announcement triggered a massive liquidation event on Feb. 3, wiping out $2.24 billion in crypto positions within 24 hours.
Market Awaits U.S. Government’s Bitcoin Plans
At the time of writing, Bitcoin is trading at $98,294.29 after briefly dipping below the psychological $100,000 mark. Analysts remain cautious about further near-term volatility but emphasize that Bitcoin’s ability to recover from significant liquidations showcases its market strength.
Some experts believe that once the U.S. government confirms its anticipated Bitcoin policies, BTC could see an explosive surge. Crypto analyst Thomas Fahrer speculated in a Feb. 5 post on X (formerly Twitter) that if the U.S. announces Bitcoin purchases, BTC could jump by $50,000 in a single minute.
The day the US government announces they are buying bitcoin, the price will go up $50,000 in a single 1 minute candle. Do not get caught short.
— Thomas | heyapollo.com (@thomas_fahrer) February 5, 2025
Similarly, MN Capital founder Michaël van de Poppe highlighted that the crypto sector remains undervalued. He suggested that increased adoption and positive regulatory clarity could lead to significant upside potential for Bitcoin and altcoins alike.
Is the Market Nearing a New Bull Run?
While short-term price swings may continue due to macroeconomic influences, Bitcoin’s broader adoption and institutional interest signal a promising long-term trajectory. Analysts advise investors to remain vigilant as the market braces for a potentially historic price breakout.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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