Arguably one of the biggest tailwinds that Bitcoin has ever had is about to get behind it when Donald Trump is inaugurated as the next US president later today. Already having surpassed the all-time high in early frenzied trading on Monday, what the rest of the day might bring for Bitcoin can only be guessed at.
An unprecedented surge
In early trading, the Bitcoin price rallied 10% to get above $109,000 on Monday. This all happened in the timespan of around eight hours. An increase such as this, in such a short space of time, is unprecedented in Bitcoin’s history. There are still many hours left in the day …
This incredible occurrence may spark a final stage of the bull run that can only be imagined at. Trump has said that he wants to make crypto a priority, and this change in fortunes for a fledgling asset could only have been dreamed of even just a few months ago.
From the stolid and unyielding anti-crypto stance of the Biden administration, a transfer to a welcoming and supportive Trump administration will have the effect of throwing off the shackles and giving wings to the crypto industry.
Big buyers help the cause
Right on cue, the U.S. Spot Bitcoin ETFs bought the 5th highest amount of $BTC with a 9.76K inflow on Friday, equating to $975.60 million. This adds to the $755.10 million inflows of last Wednesday and $626.10 on Thursday.
One also needs to bear in mind that MicroStrategy normally announces a purchase on Monday. Michael Saylor has already hinted at this on his X account on Sunday, where he posted a graphic of all the MicroStrategy purchases, and the statement: “Things will be different tomorrow”.
Healthy retrace followed by massive surge
Source: TradingView
The daily chart for $BTC is looking very good. The very healthy retrace back to the descending trendline of the top of the wedge was followed by the massive surge up and past the previous $108,300 all-time high that was set on 17 December. The new high touched $109,300, but that may not last for long.
Weekly and 2-weekly Stochastic RSIs signal huge price momentum
Source: TradingView
The weekly time frame shows $BTC on what could be its rocket launchpad. At the bottom of the chart is the Stochastic RSI, and the indicators are showing that they have likely found support at the 50.00 level. A cross up is in evidence, which can bring a lot of upside momentum to the price.
Source: TradingView
Zooming out even further into the 2-week time frame, and looking at the bottom of the chart once again, the Stochastic RSI for this time frame is also displaying a cross up of the fast blue line over the slow red line. Combined with the weekly Stochastic RSI, the resulting upwards price momentum is extremely bullish.
Things could get very exciting for the crypto space over these next days, weeks, and months. The financial space is changing fast, and Bitcoin’s place as the preeminent store of value could become a reality over the next few years.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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