
A “power of 3” pattern popped up on Bitcoin’s chart, suggesting that prices above $100,000 will occur before President-elect Trump takes office.
Bitcoin (BTC) price is up 11.50% from its Jan. 13 lows at $88,900, forming a bullish engulfing pattern on the daily chart. The crypto asset also established a position above equal highs (EQs) between $95,350 and $96,150, which previously acted as a resistance range.
Bitcoin 4-hour chart. Source: Cointelegraph/TradingView
After the recent swing low, favorable CPI data on Jan. 15 has pushed BTC to the brink of another $100,000 re-test. However, one particular setup implied that BTC could reclaim a higher position than $103,000 before President-elect Trump’s official appointment on Jan. 20.
Sustained outperformance may hinge on whether US President-elect Donald Trump implements pro-crypto policies once he takes office on Jan. 20.
Cryptocurrency analysts are turning bullish after favorable US inflation data sent Bitcoin (BTC) surging some 3% amid hopes of more interest rate cuts.
On Jan. 15, the US Consumer Price Index (CPI) report tipped lower-than-expected core inflation in December, causing Bitcoin’s spot price to rally from around $96,000 to nearly $100,000. Other assets, including stocks and gold, also surged.
Futures markets assign a roughly 30% chance of the Federal Reserve, America’s central bank, cutting interest rates in March, according to CME FedWatch. Rate cuts generally benefit crypto.
Bitcoin futures markets may still be overheated, and a hotter-than-expected CPI could trigger further drawdowns, Steno said.
Bitcoin (BTC) holders should brace for more selloffs as rising US prices create an increasingly unfavorable macroeconomic backdrop for risky assets, Steno Research said in a Jan. 13 report.
Since mid-December, Bitcoin’s spot price has declined roughly 10%, dropping from all-time highs of around $106,000 to around $96,000 as of Jan. 14. Steno said this trend may continue, with BTC dropping to as low as $85,000 per coin.
The cryptocurrency’s sell-off largely reflects “ongoing repricing driven by an unfavorable macroeconomic environment, with inflation once again taking center stage,” Steno said.