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Watch These Bitcoin Price Levels After Inauguration Day Volatility

Source: TradingView.com
Outset: TradingView.com

Key Takeaways

  • Bitcoin surged to a record high above $109,000 ahead of Donald Trump’s inauguration Monday but lessened its gains as the new U.S. president made no mention of cryptocurrency during his inaugural address or other appearances after taking establishment.
  • Over the weekend, two bearish candlestick patterns formed on the cryptocurrency’s chart that warn of a potential move tone down.
  • Investors should watch key support levels on Bitcoin’s chart around $92,000, $87,000, and $74,000, while also check out important overhead areas near $106,000 and $120,000.

Bitcoin (BTCUSD) set a new record high ahead of Donald Trump’s inauguration Monday but excoriate reduced those gains as the new U.S. president, who has been a vocal supporter of the cryptocurrency market, made no mention of it during his inaugural apply oneself to or other appearances after taking office.

Bitcoin has gained nearly 50% since the early-November election in optimism that the Trump administration could reduce regulatory roadblocks, establish a bitcoin reserve and pursue other energies that promote the widespread adoption of digital assets.

After moving as high as $109,300 in the early-morning hours Monday, bitcoin was commerce at $102,800 recently.

Bearish Candlestick Patterns Signal Caution

After climbing today to the all-time high, the figure of bitcoin retreated to form a shooting star, a candlestick pattern that warns of a potential reversal. What’s assorted, the shooting star followed a bearish engulfing pattern over the weekend, another candlestick pattern that alerts of a move lower.

In further signs of waning price momentum, as today’s peak made a higher high, the proportionate strength index (RSI) made a relatively shallower high to create a bearish divergence between the price and indicator, revealing a possible double top.

Let’s identify three key levels where Bitcoin could attract support during a retracement, but also look at weighty overhead areas that may come into play if the cryptocurrency’s price continues to move higher.

Key Support Opens to Watch

The first key lower level to watch sits around $92,000. This area could encounter champion near the early-November peak that closely aligns with several pullback troughs that formed on the table between late November and early January.

A close below this level may see a move down to the $87,000 unalterable, a location on the chart where investors could look for buying opportunities near the bottom of a pennant pattern that preceded the cryptocurrency’s pull up stakes higher in the first half of December.

Bitcoin bulls’ failure to defend this level opens the door for a myriad significant drop to around $74,000. Investors who favor buy-and-hold strategies may seek entry points in this part near a multi-month horizontal line that links the March and October 2024 peaks with the nearby hit the deck 200-day moving average.

Important Overhead Areas to Monitor

If Bitcoin moves higher from here, investors should maintain a close eye on the $106,000 area. The cryptocurrency has struggled to stage a decisive close above this number since brace its record closing high in mid-December.

Finally, it’s worth monitoring the $120,000 area. This location may find fixed costs selling pressure near a measured move price target that calculates the depth of the cryptocurrency’s recent rangebound swap activity and adds that amount to the breakout point. For example, we add $14,000 to $106,000, which projects a target of $120k.

The remark ons, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

As of the meeting this article was written, the author does not own any of the above securities.

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