Bitcoin (BTC) is trading at approximately $97,000 today, reflecting a slight recovery after a recent dip below the $90,000 psychological threshold. With President-elect Donald Trump’s inauguration just five days away, the cryptocurrency market is gripped by uncertainty, as investors weigh the potential impact of his pro-crypto stance and upcoming policy changes.
Bitcoin’s Current Performance
As of this morning, Bitcoin’s price is up 0.18%, trading at $96,938. This modest rebound follows a sharp correction earlier this week, when BTC dropped nearly 14% from its January 6 levels. The recent recovery has also bolstered the performance of other cryptocurrencies, with Ethereum (ETH) showing minor losses of 0.79% and XRP climbing 7%.
Bitcoin’s ability to hold above the $90,000 mark has reassured some traders, although the market remains divided on the short-term outlook.
Why Trump’s Inauguration Matters to Bitcoin
Donald Trump’s pro-crypto stance has been a focal point of his presidential campaign and transition period. His plans, which include appointing crypto-friendly advisors and potentially introducing favorable regulations, have fueled optimism among crypto enthusiasts.
However, uncertainty looms over how these policies will unfold. Speculation about Trump’s first actions as president—such as approving a strategic Bitcoin reserve or addressing the regulatory environment—has led to a mix of bullish and cautious sentiment in the market.
Historically, major political events like inaugurations often trigger volatility in financial markets, and Bitcoin is no exception. Investors are closely monitoring whether the event will serve as a “buy-the-news” catalyst or lead to profit-taking, especially among those who opened long positions before the election results.
Key Support and Resistance Levels
From a technical perspective, Bitcoin’s price is navigating a crucial range. Analysts have identified key support levels at $95,936, $94,305, and $92,501. On the upside, resistance is anticipated around $99,400, a level that could cap Bitcoin’s short-term gains.
If Bitcoin manages to break above this resistance, it could pave the way for a retest of the $100,000 milestone. Conversely, failure to sustain current levels might lead to a deeper correction, with potential downside targets near $85,965, as suggested by Elliott Wave analysis.
Mixed Sentiment Among Experts
The market’s divided outlook is echoed by prominent analysts. Coiner-Yadox, a well-known crypto analyst, has projected a bearish short-term trend for Bitcoin. According to his Elliott Wave analysis, Bitcoin’s current wave pattern suggests limited upside potential, with a risk of further declines if the fifth wave completes as anticipated.
On the other hand, long-term bulls argue that Trump’s inauguration could mark the beginning of a new rally, driven by his administration’s crypto-friendly agenda.
Market Implications of Trump’s Pro-Crypto Policies
Trump’s anticipated crypto policies are expected to have far-reaching implications for the digital asset market. Some of the key factors to watch include:
What Lies Ahead for Bitcoin?
As January 20 approaches, Bitcoin is likely to remain volatile. Traders and investors will need to stay vigilant, monitoring both technical indicators and policy developments. While uncertainty prevails in the short term, Trump’s inauguration could set the tone for a transformative period in the cryptocurrency market.
Whether Bitcoin continues its recovery or faces further corrections will depend on a delicate interplay of market sentiment, technical factors, and the new administration’s actions. For now, the $97,000 level serves as a critical pivot point in this unfolding narrative.
Dan hold a master of finance from the ISEG (France) , Dan is also a Fan of cryptocurrencies and mining. Send a tip to: 0x4C6D67705aF449f0C0102D4C7C693ad4A64926e9
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