Bitcoin (BTC) is currently testing the critical $100,000 support level on January 21, after a turbulent few days following U.S. President Donald Trump’s inauguration. While markets had anticipated that Trump’s speech might include mention of cryptocurrencies, his failure to address Bitcoin or any digital asset policies left traders uncertain about future price direction. The resulting volatility has sent Bitcoin oscillating around this psychological threshold, with many market participants now eyeing potential price corrections.
Traders Eye Sub-$100K Targets
After the inauguration, Bitcoin’s price saw a decline, as over $500 million in crypto long positions were liquidated, according to data from CoinGlass. With the lack of clarity on regulatory support for cryptocurrencies, some analysts are predicting further downside pressure. These market conditions could lead Bitcoin to dip into the $90,000 to $99,000 range.
Prominent crypto trader Crypto Chase suggested that the key support level around $99,500 may offer a good entry point for long positions, but only if this support level holds firm. Other traders, like XO, pointed out that Bitcoin is still navigating the price range it’s been in since December, fluctuating between $90K and $108K. Once Bitcoin breaks free from this narrow range, traders expect a major price move in one direction or the other.
Breakout Signals on the Horizon?
Despite the bearish sentiment, market analysts believe that a breakout may be on the horizon. Traders are closely monitoring Bitcoin’s 10-day simple moving average (SMA), which currently stands at $99,969. Notably, Bitcoin previously tested this level before reaching new all-time highs, suggesting that a similar pattern could unfold once again.
Analyst Matthew Hyland noted that Bitcoin’s recent behavior mirrors its movements before past rallies. Although it experienced a pullback after approaching the $100K support, Bitcoin’s overall trend is still favorable, and traders are watching for signs of a breakout in the coming days.
Adding to the speculation, James Check, another respected analyst, highlighted the Choppiness Index, a technical tool used to gauge market direction. The Choppiness Index has been showing signs of ending Bitcoin’s sideways movement, which has characterized the asset’s price action in recent weeks. This suggests that the market may soon shift into a more significant trend—either a bullish rally or a bearish correction.
Market Sentiment: Cautious Optimism
While there is some caution in the market, many traders remain optimistic that Bitcoin’s breakout could come soon. With the market seemingly in a holding pattern after Trump’s speech, traders are waiting to see which direction Bitcoin will take. A decisive break above or below the $100K support level will likely set the stage for the next phase in Bitcoin’s price movement.
In the short term, Bitcoin’s price is heavily influenced by market sentiment and external factors like governmental policies and institutional adoption. As the crypto community continues to digest Trump’s speech—and the subsequent lack of clear direction regarding digital assets—traders are keeping a close eye on any shifts in market behavior that might signal the start of a new price trend.
For now, Bitcoin remains at a critical juncture. The market’s current range-bound movement could either lead to a bullish breakout above the $108K resistance or a drop below the $100K support level, potentially triggering further downside momentum.
Conclusion
Bitcoin’s price is currently testing the $100K support level, following market uncertainty after U.S. President Donald Trump’s inaugural address. With no mention of cryptocurrency policy, Bitcoin traders are uncertain about the next steps for the market. Despite the challenges, analysts are closely watching for signs of a breakout in the coming days. As Bitcoin hovers near crucial support levels, traders are split on whether the cryptocurrency will rebound or face further declines. Only time will tell, but the coming days could bring significant movements in Bitcoin’s price direction.
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