The Potential Impact of Trump’s Memecoin on Bitcoin’s Price
After the launch of Donald Trump’s official memecoin, OFFICIAL TRUMP, the crypto markets have experienced a surge in volatility. The token has attracted significant liquidity, propelling it into the top 20 cryptos in the market. In the midst of this frenzy, Bitcoin, which was previously trading within a narrow range and was expected to dip below $100K, suddenly skyrocketed to a new all-time high above $109K. This sudden surge has led many to speculate that Bitcoin’s price may soon break above $110K following the new president’s inauguration.
As the new president takes office, there is anticipation for a shift in regulations under the leadership of Gary Gensler, who is expected to step down as the SEC chairman. This potential change in regulatory environment could pave the way for a new era of growth in the digital asset space. With rumors swirling about a Bitcoin reserve announcement, the market has yet to see a significant correction in the price of BTC.
The current price of Bitcoin is hovering at a new all-time high, indicating that investor sentiment is focused on long-term prospects rather than short-term gains. While BTC has entered a phase of profit-taking, this may just be the beginning of a larger upward trend.
Technical Analysis and Price Predictions
Bitcoin’s price is currently testing the final resistance level before entering the discovery phase, forming a ‘w-shaped’ or double bottom pattern. The supertrend has turned bullish, signaling the potential for further upside. Additionally, the RSI is approaching overbought levels, indicating that Bitcoin could reach a new all-time high around $115K.
While a minor retracement to the support zone between $107.9 and $109.3 is possible, it may only be temporary. The recent volatility in the markets, fueled by the TRUMP & MELANIA mania, is expected to bring about significant changes in the coming days. However, the sustainability of the rally and the ability to maintain gains above this level remain uncertain.