Bitcoin outlook: Hits new record high in highly volatile trading ahead of Trump's inauguration

Bitcoin

Bitcoin was the top market performer at the start of the week, moving in a wild swings from the levels below 100K to new record high (109582) during the Asian session on Monday.

Euphoria over President Trump’s inauguration and the list of tasks he is going to focus as soon as he officially steps in the White House, (overhaul of crypto market regulations is one of top priorities) strongly boosted volatility.

Last Friday’s surprise launch of Trump’s crypto token, which gained high popularity and reached trading volume of $52.5 billion in past 24 hours, strongly contributes to highly volatile crypto markets.

Demand for crypto’s is likely going to rise further, as Trump’s strong pro-crypto stance continues to boost positive sentiment (Trump has promised to be a ‘crypto President’), despite to some dissonant tones, warning about potential violation of a number of ethical and regulatory questions.

Bitcoin would strongly benefit in such environment, although bulls may take some time to resume higher, due to headwinds from nearby psychological 110K barrier and overbought daily studies.

Limited dips should stay above broken Fibo 76.4% barrier (103830) which reverted to solid support and guards next key levels at 101K (broken Fibo 61.8%); 100K (psychological / 10DMA) and 98870 (broken trendline resistance) loss of which will be bearish.

Sustained break of 110K pivot to generate fresh bullish signal and unmask 120K target, with intermediary resistances at 113K; 115800 and 118080 (Fibo projections of the rally from 95892, Jan 13 spike low).

Res: 109582; 110000; 113000; 115800.
Sup: 106380; 103830; 102771; 101000.