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Bitcoin falls away from 109k, finding support at 100k.
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Today Bitcoin recovers towards 104k.
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Trump failed to mention crypto in his inauguration speech.
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World Liberty Financial acquired $112 million in crypto.
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BTC tests resistance at 104k zone.
Bitcoin fell from yesterday's all-time high above 109k, dropping to a low of 100k before recovering today towards 104k. The price corrected lower following Tump's inauguration ceremony and as extreme greed dominates. Although Trump’s actions may speak louder, lifting the mood.
Bitcoin falls as Trump leaves BTC out of his speech
On Monday, Trump's inauguration quickly became a sell-the-news event for crypto. Bitcoin, other cryptocurrencies, and even the newly coined token $TRUMP corrected lower after the U.S. president failed to mention crypto in his speech.
Trump's inaugural speech was accompanied by a host of executive orders and plans relating to trade tariffs, immigration, and energy deregulation. However, the crypto industry was disappointed that it didn't get a mention. Trump failed to touch on a strategic Bitcoin Reserve or repealing the US Securities and Exchange Commission’s (SEC) SAB 121 rule, as the crypto community had hoped for, while he did talk about putting Americans on Mars!
It is still very early days, but Bitcoin buyers will want to see the fundamentals to support the optimism and bullish expectations following Trump's election, which helped BTC rally 50% from its November levels.
Do actions speak louder than words?
However, this could be a case of actions speak louder than words. On his first day in office, World Liberty Financial, the DeFi project associated with President Trump, bought $112 million in crypto. This included $47 million of wrapped BTC and $47 million of ETH, as well as other tokens.
So, while the speech and executive orders fell short of expectations, Trump’s World Liberty Financial showed that Trump was still pro-crypto.
Despite the near-term disappointment from the speech, the medium-term outlook remains encouraging, given Trump's personnel appointments. Trump has nominated Paul Atkins to head the SEC, who is expected to undo some of the unfavourable policies implemented by his predecessor, Gary Gensler.
Meanwhile, the market is in extreme greed mode, clocking 76 on the fear and greed index. When investors get too greedy, this often means the market is due for a correction.
Where next for Bitcoin?
Bitcoin rose to 109.5k on Monday, a new ATH, before falling to a low of 100k. The price has recovered to current levels of 103k.
Buyers supported by the RSI over 50 and the MACD bullish crossover could look to buy should the price rise above 104k before testing resistance again at 109k. A rise above 109k sees blue skies above, with 125k the next logical level.
However, a double-top bearish reversal pattern may also be forming. This combined with the long upper wick on yesterday’s candle, could encourage sellers to test support at 100k, the psychological level. A break below here opens the door to 90k. Should sellers take out this level, they create a lower low.
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