- Bitcoin rallies as Trump’s pro-crypto policies stir optimism ahead of inauguration.
- $120K BTC call options dominate Deribit, with $1.52B in open interest.
- Analysts predict a Wyckoff accumulation pattern fueling a potential uptrend.
Bitcoin market sentiment has reached a fever pitch as traders anticipate pro-crypto shifts once Donald Trump assumes the presidency on January 20th. Investors are betting on a historic rally that could catapult prices to $120,000 or beyond.
With Bitcoin trading near $101,810, exchanges like Deribit have seen a surge in interest for the $120k BTC call option, now at $1.52 billion. Greg Magadini, director at Amberdata, suggested that bullish momentum may be driven by policy announcements and favorable sentiment surrounding Trump’s crypto stance.
Technical Analysis: Two Potential Scenarios
Technical analysts are watching two potential scenarios for Bitcoin’s price. The first is a bullish breakout. BTC recently mirrored a Wyckoff accumulation pattern, last seen during the FOMC rate cut. Analysts say holding the $90,800 support level, with potential wicks to $86,500, would confirm an uptrend.
However, the second is where fears of a “brutal” scenario exist. The immediate resistance level at $102,760, the recent weekly high, needs a decisive breakout with strong volume to confirm further gains. A clear move above this level could push Bitcoin toward $110,000 or higher in the coming weeks.
Read also: BTC Set to Hit $185K in 2025 as ETH Eyes $5,500 Milestone: Galaxy Research
Risks to Bitcoin’s Momentum
If Bitcoin faces rejection at the current resistance, it may retrace to test support levels near $97,000 or $90,000, presenting buying opportunities for traders. Failure to hold these levels could lead to sharp corrections, testing Bitcoin’s recent gains.
Bitcoin’s candlestick pattern highlights market indecision, with buyers and sellers evenly matched near resistance. This tug-of-war underscores the high-stakes nature of Bitcoin’s price action as traders anticipate Trump’s potential policy shifts.
With the inauguration weeks away, Bitcoin is at a critical point. Whether this triggers an explosive rally or correction, Bitcoin remains central to the global financial discussion.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
