The BTC/USD pair bounced back from $90,000 to approximately $109,000 dollars. Furthermore, it showed some strength after the $818 million long liquidation. The bounce revealed spot market appetite for the asset. Especially among institutional investors from the United States.
Critical Support Levels
$88,400 as the Short-Term Holder Realized Price act as the key support level that must hold. This level is the cost average of the new generation of Bitcoin users and traditionally serves as a fundamental support for greater drawdowns.
Political impact consideration includes:
This is also the case with Trump’s inauguration as traders might sell the news, meaning they’re likely to take profits on positions that they bought with expectation of pro-crypto policies. Market participants are still worried about the probable new executive orders that may disrupt the crypto market regulation.
Recent Market Performance
As long as Bitcoin remains in an uptrend with a solid backing of institutions, the market has its issues in the near term. Achievements are possible if prices stay higher than major support figures and if political risks do not undermine market sentiment.
