Bitcoin’s Post-Inauguration Wobble: What’s Next?

Bitcoin’s price took a dive after President Trump’s inauguration day failed to deliver any crypto-related announcements, despite earlier hype. Let’s break down what happened and what might be next.

The Price Plunge

The price had soared to almost $110,000 on the expectation of a big pro-Bitcoin announcement from Trump. When that didn’t happen, the price quickly dropped.

Analyst Opinions: A Mixed Bag

Analysts are divided on what this means for Bitcoin’s future.

  • Uncertainty Reigns: Some, like analyst CRG, feel the market is directionless, suggesting even a simple mention of Bitcoin from Trump could cause a significant price jump. CRG even hinted at Trump’s team’s recent crypto purchases, fueling speculation of future pro-Bitcoin actions.

  • Technical Indicators: Others point to positive technical indicators. Markus Thielen highlights Bitcoin’s trading within a narrowing wedge since mid-November, suggesting a potential breakout. He believes a sustained price above a key support level around the upper boundary of that wedge would signal a bullish trend.

  • Retest and Consolidation:
    Rekt Capital notes Bitcoin’s retest of key support levels around $101,000, viewing it as a positive sign of potential consolidation between $101,000 and $106,000 before another price increase.

  • Trading Strategies: Trader Crypto Chase suggests a long position (betting on a price increase) if the price dips to around $99,500, but with specific conditions and stop-loss levels.

Hope Remains: Executive Orders?

Despite the initial disappointment, many remain optimistic about Trump’s pro-Bitcoin stance. David Bailey, a key figure in Trump’s shift towards crypto-friendliness, hinted at upcoming executive orders related to Bitcoin or crypto, potentially causing a market upswing if released.

The Bottom Line

For now, the Bitcoin market is waiting for some kind of official statement or executive order from the White House to determine its next move. At the time of writing, Bitcoin was trading at $103,182.