Key takeaways
- Bitcoin hit record highs before the Trump inauguration, spurred by pro-crypto policies.
- Spot ETF inflows of approximately $1.8 billion highlight strong institutional demand.
- Technical indicators such as the RSI and MACD suggest ongoing bullish momentum but hint at potential short-term corrections.
- Key support levels near $105,000 and $90,000 may come into play if profit-taking intensifies.
Market Dynamics and Recent Performance
Bitcoin has extended its upward trajectory, reaching fresh record highs ahead of the anticipated Trump inauguration and attracting an estimated $1.8 billion in BTC spot ETF inflows on the back of pro-crypto policies. These policies appear to have spurred broader enthusiasm among institutional investors and retail traders alike, reinforcing the notion that digital assets have cemented a place in mainstream portfolios. Despite the strong momentum, some observers are weighing the possibility of a “sell the news” scenario once the new administration formally begins, which could temporarily slow the current rally.
Technical and Fundamental Influences
On the daily chart, Bitcoin’s price has stayed well above both its 50-day and 200-day moving averages, an arrangement that often signifies an ongoing bullish cycle. The 50-day moving average hovers near $101,000, while the 200-day average currently sits closer to $97,000, indicating a sturdy underlying trend.
The Relative Strength Index on the daily timeframe has crept toward overbought territory, suggesting that while the larger trend remains robust, short-term corrections are possible if traders start locking in gains. Meanwhile, the MACD line continues to track above the signal line, providing an additional bullish hint, though the histogram has flattened somewhat, pointing to a slowing rate of acceleration.
On-chain metrics show sustained inflows into spot ETFs, supporting the idea that institutional interest remains a defining influence. This dynamic could reinforce higher price levels, provided no sudden shift in market sentiment occurs.
Looking Forward
Price action over the next week could hinge on whether continued buying pressure can override concerns that have historically accompanied major political milestones. If demand stays firm, Bitcoin may target $125,000 or beyond as traders gain confidence in the consistency of pro-crypto policies. However, a round of profit-taking could send the market back toward the $110,000 region, especially if macroeconomic factors or an unexpected sentiment reversal come into play. Observers will watch for any changes in regulatory dialogue or ETF inflows, as these elements are likely to have an outsized effect on market direction.
