Bitcoin: Technical Analysis And Insights

Bitcoin continues to show relative strength as Trump begins his presidency. The hope is for a Bitcoin reserve to be established and pro-crypto policies to be enacted.

Investors are pricing this in to the Bitcoin narrative which does leave it vulnerable to disappointment. Should President Trump not do everything the crypto investor hopes, there could be a sell-the-lack-of-news event.

In addition, Bitcoin remains vulnerable to the stock market (NASDAQ) and risk-off action. In the last week, the NASDAQ surged higher on better-than-expected CPI data. Just like in the past, Bitcoin caught a bid as well as investors flocked toward risk assets. As long as risk-assets are being bought, Bitcoin could do very well.

However, should the stock market begin a bigger selloff, Bitcoin would likely follow.

Based on technical analysis, Bitcoin is nearing major resistance at $108,000 - $110,000. Should it get through this area, the upside is to $121,000.

In terms of support, Bitcoin has major support at $91,800. It has hammered on this level seven times and held. In technical analysis, the more a level gets hit, the weaker it becomes.

If $91,800 breaks, there is no major support until $75,000-$74,000.

Overall, the next week or two will be major for Bitcoin and crypto. With the new administration in power, all eyes are on pro-crypto policies. Investors will either cheer or be disappointed. This means volatility for traders.