Bitcoin has once again taken center stage, hitting a new all-time high (ATH) of $110,000 on January 20, 2025. Despite a brief 6.33% correction following a bearish swing failure pattern on January 19, Bitcoin price today surged by 2.73%, supported by bullish sentiment and strategic buying.
This unprecedented rally comes as market speculation intensifies over President-elect Donald Trump’s inauguration and the potential establishment of a U.S. Bitcoin reserve. Data from Polymarket shows the odds of a strategic Bitcoin reserve approval skyrocketing from 37% to 59% in just minutes, sparking increased investor interest.
Why Is Bitcoin Price Rising?
The current rally can be attributed to multiple factors. First, investors appear to be reallocating funds from the TRUMP meme coin, opting for Bitcoin as a more stable and risk-averse asset. This rotation has fueled a surge in buying pressure, reflected in Bitcoin’s higher highs and higher lows on daily and weekly charts.
Second, Trump’s perceived support for cryptocurrency, evidenced by the recent launch of a meme coin on Solana, has bolstered market confidence. Investors are betting on the possibility of Bitcoin’s strategic role in Trump’s administration, particularly as the narrative around a Bitcoin reserve gains traction.
What’s Next for Bitcoin Price?
The weekend’s correction saw Bitcoin retrace to $100,000, a key value area where support held strong. This resilience triggered an 8% rally during the early Asian trading session, driving BTC to its $110K milestone.
Looking ahead, analysts identify critical profit-taking levels at the $120,362 (161.8% Fibonacci extension) and $139,683 (261.8% Fibonacci extension). However, if Bitcoin slips below $100K, it could invalidate the bullish outlook and potentially fall to $90K.
With market sentiment buoyed by Trump’s inauguration and Bitcoin’s robust technical setup, optimism remains high for further price gains. Analysts forecast BTC could soon challenge new ATHs around $120K to $130K, solidifying its dominance as a safe-haven asset in an evolving financial landscape.
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.
Also Read: Why Bitcoin Price Is Dropping Today: Profit-Taking and Market Trends Explained
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