Bitcoin price and a newly launched token linked to former President Donald Trump’s name declined on Tuesday as Trump’s first policy announcements after his inauguration.
When Trump became the 47th US president, Bitcoin set a record price of $109,071 and the crypto weekly inflows jumped to $2.2 billion. In Tuesday’s session, the price started declining from its peak but managed to maintain its January 9.5% gain at $104,000.
The TRUMP memecoin took a sudden drop following its debut on Friday night. According to CoinMarketCap data, the token’s highest price hit $75 on Monday but decreased to $37.98. The token started trading at $6.50 when it was released.
Santiment’s data reveals that Bitcoin’s decline was influenced by social media-driven FOMO among traders after the inauguration. Coinglass recorded a Bitcoin trading volume of 253.45 million dollars on the last day. Notably, the largest single trade, valued at 12.54 million dollars, occurred in the BTC/USDT markets on Binance.
Bitcoin Social Media Activity Soars Across Major Platforms
The santiment data shows traders are becoming more anxious about missing future profit opportunities and showing increased signs of impatience to get involved. Social media activity for Bitcoin appears in the chart that tracks X, Reddit, Telegram, 4Chan, and Farcaster platforms. Price movements in the short run usually work against what most traders believe.
Bitcoin investors received caution on Monday when market chatter about price increases grew more active. Investor confidence grew aggressively in mid-December but triggered a quick market dip.
During last week’s recovery, the Bitfinex alpha report shows traders bought Bitcoin aggressively to increase its price. A fast climb in the Spot Cumulative Volume Delta (CVD) data reveals intense market buying interest. The CVD examines the number of recent market orders to determine how traders feel about spot trading activities.
Strong market demand shows in the rapid increase of CVD as buyers increase their offer bids. Buyers are buying Bitcoin strongly, suggesting the market will increase.
The report finds that US exchanges drive most of the buying activity. The recent buying patterns fit institutional patterns from past MicroStrategy purchases and ETF acquisitions, which show enduring institutional interest.
Bitcoin Price Analysis
As of Jan. 21, Bitcoin trades at $104,317, down 2.54% from its previous closing price. During today’s trading, Bitcoin’s highest and lowest points were $107,887 and $100,145. Bitcoin prices peaked at $109,300 earlier.
Bitcoin has strong support at $92,000, which aligns with previous price peaks. Another significant level is $87,000, the lowest point of an earlier pennant formation. A critical low point is $74,000, near Bitcoin’s daily upward-moving average line. As Bitcoin aims to surpass $106,000, it faces two major hurdles. This price has not been breached since December. The next target is $120,000, a level it has been striving to reach.
Bitcoin’s trading charts look uncertain. However, they reveal both positive and negative signs for its future price. Two new patterns have emerged in Bitcoin’s daily charts. Traders call these patterns a “shooting star” and a “bearish engulfing.” They suggest the market might reverse soon. At the same time, the Relative Strength Index (RSI) indicates a downward trend. This happens because buying interest is slowing down.
Though some risks indicate a Bitcoin price drop might occur, traders continue to believe positive regulations in upcoming elections will boost the market growth. Investors must carefully watch the crucial price milestones to deal with possible big price changes.
This news is republished from another source. You can check the original article here
