Bitcoin Price Retests $100K Support Level After Recent ATH of $109K
Bitcoin reached a new all-time high of approximately $109K but dropped over 5% to around $102,326 within 24 hours during the inauguration of pro-crypto President Donald Trump. It has retested the critical support level above $100K, indicating potential bullish sentiment.
Key points:
- Technical analysis shows Bitcoin is retesting a bullish breakout from a narrowing wedge.
- Short-term bearish sentiment exists due to higher inflation and hawkish Federal Reserve expectations.
- Long-term optimism is fueled by Trump's crypto regulatory stance and initiatives to combat inflation.
- Proposals for strategic BTC reserves in states like Massachusetts, Texas, and Utah are underway.
Whale Investors Accumulate Bitcoin
Institutional demand for Bitcoin remains strong as a hedge against inflation and economic uncertainties. Current market data indicates:
- Bitcoin's open interest retested its all-time high above $67 billion.
- Supply on centralized exchanges has fallen to about 2.19 million, creating a supply-demand imbalance.
- World Liberty Financial purchased over $100 million in crypto, including $47 million in Wrapped Bitcoin.
- El Salvador added 11 BTC, raising its total holdings to over 6,043 BTC valued at over $611 million.
- US spot Bitcoin ETFs, led by BlackRock and Fidelity, have acquired more than 1 million BTC worth over $120 billion.
The overall outlook for Bitcoin remains positive, particularly with Trump's administration advocating for further adoption.