Bitcoin Market Insights | Pre-Inauguration (January 2025)

Bitcoin ( BTC&USD ) is once again at the forefront of market discussions as traders analyze its price movement and macroeconomic factors.

As of January 19, 2025, Bitcoin (BTC) is trading at $104,936, reflecting an increase of approximately 1.8% from the previous close. The intraday high reached $105,505, with a low of $102,875.

Market Dynamics:

Regulatory Environment: The inauguration of President Donald Trump has introduced a more crypto-friendly regulatory landscape. Analysts anticipate that smaller cryptocurrencies, or altcoins, may experience more significant gains compared to Bitcoin under the new administration.


Price Projections: Some analysts predict that Bitcoin's value could reach up to $400,000 in 2025, driven by favorable cryptocurrency policies and the potential establishment of a strategic Bitcoin reserve.
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Technical Analysis:

Support and Resistance Levels: Immediate support is identified around $100,000, with resistance near the all-time high of $108,309.


On-Chain Metrics: Data from Glassnode indicates a decline in short-term demand momentum, with "Hot Capital" decreasing by 66.7% from its December 12th peak. This suggests potential consolidation or further correction in the near term.


Conclusion:

As markets gear up for the upcoming inauguration, Bitcoin remains in the spotlight. Bitcoin's market is influenced by a combination of favorable regulatory developments and technical indicators pointing toward potential consolidation. Traders should monitor support and resistance levels closely and stay informed about policy changes that could impact market dynamics.

Outlook Ahead of Inauguration

Bitcoin is likely to remain volatile leading up to the inauguration, driven by Policy announcements related to cryptocurrency regulation & Broader macroeconomic cues, such as inflation reports and Fed commentary.

Trading Ideas

Bullish Scenario:

Long above $105,500, targeting $108,000 and $110,000, with a stop at $103,000.

Bearish Scenario:

Short below $102,500, targeting $100,000, with a stop at $104,000.