Bitcoin (BTC), the world’s largest cryptocurrency by market capitalization, has been facing some challenges in terms of price momentum following the inauguration of pro-crypto Donald Trump as the President. The overall market seems to be struggling, with some cryptocurrencies experiencing price rallies while others are moving sideways or consolidating.
Bitcoin is currently consolidating in a tight range near the resistance level of $108,000, between the $100,000 and $108,000 levels. However, the price of Bitcoin is now falling towards the lower boundary of the consolidation, indicating some bearish pressure.
Technical analysis suggests that BTC is bearish as it has formed a bearish divergence on the daily time frame. A bearish divergence occurs when the price of an asset makes higher highs, but a technical indicator, such as the Relative Strength Index (RSI), makes lower highs. This divergence indicates weakening upward momentum and suggests a potential price decline in the coming days.
If Bitcoin remains below the $108,000 level, there is a strong possibility it could decline by 11% to reach its next support near the $92,000 mark. However, it may be challenging for Bitcoin to experience a significant price decline, even with a pro-crypto president in office.
In addition to the technical analysis, BlackRock CEO Larry Fink has made a bold prediction that Bitcoin could reach $500,000, $600,000, or even $700,000 in the future. This predicted target will only be achieved once Bitcoin breaks the resistance at $108,000; otherwise, the price is likely to continue consolidating further.
Currently, Bitcoin is trading near $104,100 and has experienced a price decline of over 2.65% in the past 24 hours. The trading volume has also dropped by 35%, indicating lower participation from traders and investors compared to previous days.
Overall, Bitcoin’s price momentum is facing some challenges, but with the support of a pro-crypto president and bold predictions from industry leaders, there is still potential for Bitcoin to make significant gains in the future. Stay tuned for more updates on Bitcoin’s price movements and market trends.