After hitting a fresh all-time high of $109,588 the day before, the price of bitcoin remains over the $100,000 barrier on Tuesday.

According to Santiment's statistics, Bitcoin values swiftly recovered as a result of widespread FOMO and greed on social media following Trump's inauguration.

The inaugural ceremony of President-elect Trump may be a sell-the-news event, according to Bitfinex analysts who spoke to Financialstreetinfo.

After hitting a fresh all-time high of $109,588 the day before, the price of Bitcoin (BTC) remains above $102,000 on Tuesday. According to Santiment's statistics, Bitcoin prices swiftly recovered after social media revealed a significant amount of greed and FOMO among traders following President Donald Trump's inauguration. Furthermore, Trump's inaugural ceremony might be a sell-the-news event, Bitfinex analysts told Financialstreetinfo.

Trump's inauguration address ignores Bitcoin, which wobbles Bitcoin
A new all-time high (ATH) of $109,588 was set for the price of bitcoin on Monday, just hours before Donald Trump's inauguration. But Bitcoin swiftly fell 6.68% from its peak after the event, ending at $102,260. Trump's inauguration address, which disregarded Bitcoin, was the main cause of this market volatility. Coinglass data shows that during the last 24 hours, there were $253.45 million worth of Bitcoin liquidations. The largest single liquidation order, worth $12.54 million, was placed on Binance for BTCUSDT.

 

According to Santiment's statistics, social media revealed significant FOMO and greed among Bitcoin dealers. Mentions on X, Reddit, Telegram, 4Chan, and Farcaster are displayed in the chart below. In the past, especially in the short term, prices have tended to move against the expectations of the masses.

In the instance of Bitcoin, the crowd's Monday statements of rising prices were selling signals. A similar action was taken in mid-December, when the crowd's reference to increased prices caused the price of Bitcoin to temporarily decline.


According to Monday's Bitfinex alpha report, strong spot purchasing was the main driver of Bitcoin's rally last week. The Spot Cumulative Volume Delta (CVD) indicator has sharply increased, as seen in the graph below. When examining buying and selling pressure in spot markets, the CVD is a crucial market statistic. Over time, it monitors the net difference between market purchase and sell orders.

A sharp increase in CVD suggests that purchasing pressure is controlling the spot market. This implies that buyers deliberately raise ask prices, indicating high demand and possible asset appreciation.


The report goes on to say that a sizable amount of the buy volume has come from US-based exchanges, and that the buying pattern is similar to earlier Exchange Traded Funds (ETF) and MicroStrategy purchases, supporting the idea that institutional demand is still high.

 

"We think that President-elect Trump's inauguration ceremony could potentially be a sell-the-news event," Bitfinex analysts told FXStreet in an exclusive interview.

However, it may take some time for bids to restock due to the spot buying pressure observed last week, which might result in a small drop before further upward momentum begins, the analyst added.


Bitcoin Price Prediction: The $109K mark is not maintained by BTC
On Monday, the price of bitcoin hit a new all-time high (ATH) of $109,588 before plummeting 6.68% to close at $102,260. It is currently hovering at $102,000 as of Tuesday.

The rally might extend above the $125K mark, which is determined by the 141.40% Fibonacci extension level (derived from the November 4 low of $66,835 to Monday's ATH of $109,588) at $127,287, if Bitcoin maintains its upward momentum and breaks above its all-time high.

The daily chart's Relative Strength Index (RSI) indicator shows an increase in bullish momentum with a reading of 58, above its neutral level of 50. Furthermore, on January 15, the Moving Average Convergence Divergence (MACD) indicator reversed a bullish crossover, indicating a buy signal and the potential for an uptrend to continue.

 

However, Bitcoin may continue to fall and retest its next support level at $90,000 if it experiences a pullback and closes below $100,000.

 

FAQs on Bitcoin, altcoins, and stablecoins

What is Bitcoin?

Bitcoin, a virtual currency intended to function as money, is the biggest cryptocurrency by market capitalization. Third-party involvement in financial transactions is no longer necessary because this mode of payment is not controlled by any one individual, organization, or group.


What are altcoins?

Describe stablecoins.

Bitcoin Dominance: What Is It?