Bitcoin surged past the $102,000 mark this week, gaining over 7%, fueled by supportive US macroeconomic data and renewed optimism ahead of President-elect Donald Trump’s inauguration. Reports highlight diminishing appeal in selling BTC during this period, citing historical market patterns and expectations of crypto-friendly policies under Trump’s leadership. Despite mixed US retail sales data and lingering caution, institutional demand showed slight recovery, with Bitcoin ETF inflows nearing $887.3 million. On-chain metrics reveal increasing accumulation by large wallets, signaling potential for continued growth. With bullish momentum reflected in RSI and MACD indicators, Bitcoin eyes its all-time high of $108,353 as traders watch key support and resistance levels.

KEY LOOKOUTS

• This week, the inflows in Bitcoin ETF went up to $887.3 million, and this is essential in maintaining the upward momentum.

• Whale accumulation has been on an increase, whereas retail participation has begun to dip; this may signify long-term growth propelled by stronger hands.

• An RSI value above 61 and a bullish MACD crossover indicate growing momentum, and bitcoin is positioned to rally towards all-time highs.

• Supportive US economic data and optimism surrounding Trump’s pro-crypto policies drive investor confidence, boosting Bitcoin’s upward trajectory.

Bitcoin rallied above $102,000 this week, gaining over 7%, driven by supportive US macroeconomic data, growing institutional demand, and optimism around Trump’s inauguration. Bullish on-chain metrics and market indicators signal potential for continued growth.

• BTC rallied over 7% this week, supported by positive US macroeconomic data and investor optimism ahead of Trump’s inauguration.
• Bitcoin ETF inflows reached $887.3 million, marking a mild recovery in institutional interest, crucial for sustaining long-term momentum.
• Increasing whale accumulation and declining retail participation indicate a strong foundation for Bitcoin’s price rally.
• Lower-than-expected US PPI and CPI data, alongside mixed retail sales, favored risky assets like Bitcoin while keeping USD bulls defensive.
• RSI at 61 and a bullish MACD crossover point toward an uptrend, with Bitcoin targeting its all-time high of $108,353.
• Expectations of crypto-friendly policies under Trump’s leadership contribute to bullish sentiment across the market.
• Bitcoin bounced off $90,000 support, breaking the $100,000 barrier, with eyes set on surpassing December 2024’s high of $108,353.

The price of bitcoin rose by over 7% in the week trading at $102,000 above for Friday on bullish US macroeconomics and more positive news building up towards the inauguration of Donald Trump. Relatively low producer price index and the consumer price index, and the mixed retail sales figures also help to build bullish risky assets that include Bitcoin. Institutional demand also reflected a rebound, with inflows into the Bitcoin ETF at $887.3 million, indicating renewed interest from large-scale investors. This bullish momentum was further supported by on-chain metrics, showing that while retail participation declined, whales continued to increase their accumulation.

BITCOIN Daily Price Chart

Sources: TradingView, Prepared By ELLYANA

Key technical indicators lean positive towards the continuation of the Bitcoin rally. The Relative Strength Index is above 61, showing strong bullish momentum. A bullish crossover on the MACD indicator points to a possible uptrend. With support at $90,000 holding strong, Bitcoin has broken the $100,000 barrier and is now looking at its December 2024 all-time high of $108,353. Optimism surrounding possible pro-crypto policies from Trump as well as broader macroeconomic stability could further fuel further growth in the price of Bitcoin, making this a critical asset to watch out for in coming days.

TECHNICAL ANALYSIS

As Bitcoin trades over $102,000, there is strong momentum on the charts, with healthy buying interest showing up in a Relative Strength Index (RSI) of 61 and further bullish momentum now indicated by the recent bullish MACD crossover. The rally is further supported with strength at $90,000. Meanwhile, Bitcoin has transformed the psychological level of $100,000 into a strong support area. In addition, rising trading volumes reinforce the uptrend, and should this trend continue, the cryptocurrency will likely retest the all-time high of $108,353. Traders need to keep a close eye on $100,000 as an important support to continue with the bullish scenario

FORECAST

Bitcoin’s present rally above $102,000 indicates a significant bullish trend. However, potential short-term price fluctuations could put the cryptocurrency through key support and resistance tests. On the positive side, if the cryptocurrency can sustain its present momentum, the near term may see it test all-time highs around $108,353. There is also an optimistic macro environment and pro-crypto policies from the Donald Trump administration. These views are supported by robust whale accumulation and rising institutional interest, reflected in ETF inflows.

On the downside risks side, the price might breach a critical $100,000 support level that can prompt selling into the order book, possibly dragging Bitcoin down into the $90,000 range. Sentiment in the market remains responsive to any exogenous event like a policy change in US Federal Reserve policies or any geo-political situation. Other reasons for slowing the upward momentum could be retail traders taking profits and lower inflows from stablecoins. Traders must be cautious, keeping a close eye on the key levels; $100,000 is the key support, while $108,353 is the immediate resistance.