CMT-Certified Expert Explains Why Bitcoin May Not Reach Past Extremes On Indicators

A crypto market technician is debating whether Bitcoin has reached its peak this bull cycle, as technical indicators suggest a potential loss of momentum. The analysis report highlights technical indicators like the Relative Strength Index (RSI) which failed to reach past extremes, raising concerns about Bitcoins future trajectory. Bitcoin Indicators Fall Short Of Historical Peaks Bitcoin has historically exhibited strong indicator readings during major cycle tops, reflecting extreme market engagement and enthusiasm. However, in this bull cycle, the pioneer cryptocurrency’s RSI reading has failed to reach historical peaks despite Bitcoin reaching new all-time highs.  Related Reading: Bitcoin Price Risks Further Crash As S&P Monthly LMACD Turns Bearish, Why Bulls Have Only 20 Days Tony Severino, a crypto market technician on X (formerly Twitter), has Bitcoin Price Risks Further Crash As S&P Monthly LMACD Turns Bearish, Why Bulls Have Only 20 Days a detailed analysis of Bitcoin, challenging the assumption that the cryptocurrency must reach the same overbought RSI levels as in previous cycles to confirm its market peak. The key argument here is that lower highs on oscillators like the RSI, combined with higher highs in Bitcoins price, can be a bearish signal, suggesting waning strength in the market.  Severino shared an example comparing Bitcoins current bull cycle to past cycles. In the previous bull market, Bitcoins monthly RSI reached above 90, but its current cycle has not. The analyst posed a question about whether this inability to reach past extremes means that Bitcoin hasnt reached a market top or simply lacked the same momentum to push its RSI to the highest level.  The analyst has warned that believing that Bitcoin must reach past extremes on indicators before hitting a price peak is a dangerous way of thinking. Historical patterns do not always repeat in the same way, and relying too much on past indicator peaks could cause traders to miss warning signs of a top or underestimate the possibility of a bear market.  Severino also pointed to historical data from the S&P 500 in the 1950s and 1960s, where similar RSI failure preceded a long market meltdown. During these times, cyclical peaks hit RSI readings of 77 or higher, but in 1969, the RSI failed to reach those highs, signaling underlying weakness. This market downturn ultimately led to the first lower low in over 20 years.  While this historical behavior of the S&P 500 does not mean that Bitcoin is destined for a lower high, it does suggest that the cryptocurrency does not need to reach extreme RSI levels to confirm a cycle top and a subsequent bear market.  Analyst Says BTC Has Hit Its Market Top In his analysis Severino confirmed that Bitcoin has already hit its market top for this bull cycle. Following his detailed analysis of Bitcoins RSI levels, a community member asked if Severino believes that Bitcoin reached a market top when its price surged above $109,000.  Related Reading: This Analyst Predicted The Bitcoin Price Crash From $91,000, Why Its Far From Over The analyst responded positively, stating that current market data indicates that the cryptocurrency hit its highest price point for this bull cycle after Donald Trumps US Inauguration Day. At the time, Bitcoin soared past $109,000, setting a new ATH and surpassing previous records. Featured image from Unsplash, chart from Tradingview.com

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Trump Set to Host Inaugural White House Crypto Summit on March 7

On March 7, the Trump administration hosted a summit at the White House to discuss cryptocurrencies and their impact on the economy. The event brought together industry leaders, regulators, and policymakers to engage in conversations about the future of digital assets. During the summit, participants discussed the potential benefits of blockchain technology and how it [...]

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DeFi Prediction Market: What Are Its Odds to Boom?

Crypto Twitter forecasts that DeFi prediction market may become one of the hottest narratives of 2023. What are the odds?

Continue reading DeFi Prediction Market: What Are Its Odds to Boom? at DailyCoin.com.

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What Is Augur? Is Augur Still Worth Investing In 2022?

In this article, we will be looking into the Augur project to determine if it is still worth and investment in 2022.

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FSC Chairman Koh Seung-Beom, to “Minimize the Damage to Investors in Virtual Assets”

FSC Chairman Koh Seung-boem spoke at the inauguration ceremony today. He stated that “We will minimize the damage to investors

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Dubai Recognizes USDC and EURC as Inaugural Stablecoins Under New Token Regulations

In a significant move towards embracing digital currencies, Dubai has recently acknowledged the USDC and EURC stablecoins under its token regime. This recognition marks a significant milestone in the adoption of stablecoins within the region, showcasing Dubai’s commitment to fostering innovation in the crypto space. The USDC and EURC stablecoins are pegged to the US [...]

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Trumps inauguration may trigger crypto sell-off, says Arthur Hayes

Arthur Hayes published a Trump Truth blog post forecasting a massive crash in crypto markets following Donald Trumps presidential inauguration in January.

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Ether to breach $4K before Trumps inauguration Analyst

Ether has outperformed Bitcoin in futures yields, signaling potential ETF inflows that may catalyze a rally above $4,000 before Jan. 20.

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ETH to $4K before Trump inauguration, Dogecoin flips Porsche: Finance Redefined

Ethers price is set for a boost above $4,000 as Trump prepares to take office on Jan. 20, which also marks the last day of work for SEC Chair Gary Gensler.

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Bitcoin Alert: Heres Why The Trump Inauguration Is A Buy The News Event

Bitcoin has fallen to a low of $92,508 on January 8 after previously hitting $102,357 on Monday, marking almost a 10% retreat in a matter of days. The immediate catalyst appears to be the January 7 spike in US Treasury yields, with the 10-year rate hitting 4.67% following an unexpectedly strong ISM Prices Paid Index and higher-than-anticipated JOLTS job openings. Why The Trump Inauguration Is Bullish For Bitcoin While these data points renewed worries that inflation could persist, many seasoned observers insist the upcoming Trump inauguration is a reason to stay bullish on Bitcoin and crypto. The analysts from LondonCryptoClub (@LDNCryptoClub)argue that everyone is overestimating both the likelihood of tariffs or at least the size, highlighting that when Trump was previously in office, there was no substantial inflationary impact despite high-profile tariff announcements. Related Reading: Anticipating A 2025 Super Cycle: Bitcoin Rallies With Trumps Regulatory Reforms On The Horizon According to the analyst,s market participants risk overlooking the fact that the US has also got to refinance over $7trn in debt this year, which could force the Fed to keep rates lower and eventually end quantitative tightening. Raoul Pal, Founder of Global Macro Investor, echoed this sentiment by saying, I tend to agree with this take. I tend to agree with this take https://t.co/SzmHbyXoBc Raoul Pal (@RaoulGMI) January 8, 2025 Supporters of the pro-Bitcoin thesis point out that any tariffs introduced under a new Trump administration might be politically large but practically modest, echoing the LondonCryptoClub view that Trump goes big as a negotiation tactic and likely delivers much less. Another focal point is the emerging liquidity scenario that has bolstered risk assets in the past. LondonCryptoClub sees the Fed ultimately start to flood the market with liquidity, especially given the swift depletion of the Reverse Repo Facility and the potentially temporary respite offered by the debt ceiling. The same argument extends to a renewed wave of China-led global disinflation, which could pressure the United States into rate cuts if growth shows signs of stalling. Chris Burniske, a partner at Placeholder VC, said he once assumed the market would rally straight into the inauguration and then sell off, but he now foresees another scenario: Agree w this – in Q4 was thinking wed rally into inauguration and sell off after, but once that became too consensus a view + DXY & rates rallying, looks like were shifting to pain before, Valhalla after – prefer this setup tbh Some analysts see direct benefits if Trump starts publicly discussing crypto again, given how it may raise Bitcoins profile. Crypto analyst Gammichan reminded followers that we have a president who will be mentioning Bitcoin regularly and emphasized that a strong dollar could be fuel to pump us when it falls. Gammichan also stressed that 3-5% inflation is excellent for BTC and noted that while the Fed might keep rates high for the moment, it could juice it whenever because the governments own interest expenses remain uncomfortably large, with trillions in debt to manage. This angle is further enhanced by talk that other global players, especially China, may continue to stimulate their economies, thereby boosting overall liquidity. We seem to have forgotten that: -We have a president who will be mentioning Bitcoin regularly -MSTR is in the NASDAQ -Fed is in a great position with room to juice it whenever -3-5% inflation is excellent for BTC -Strong DXY means fuel to pump us when it falls -Fed needs to get Gammichan (@gammichan) January 8, 2025 Felix Jauvin, host of the Forward Guidance podcast, underscored the broader shift in market psychology by stating, Were quickly going from sell the news, to buy the news on inauguration. Related Reading: Bitcoin To Blast Off? Trumps Fury Over Interest Rates Signals Big Move Despite this generally upbeat narrative, short-term challenges remain. Recent economic data in the United States has surprised to the upside, prompting worries that the Federal Reserve might keep policy tighter for longer. Some investors see the next few weeks as a tug of war between rising yields and the prospect of renewed global easing. Still, LondonCryptoClub argues that the jump in yields might be a temporary head fake and that once the Fed recognizes how much refinancing must occur, it will be compelled to help keep rates low and eventually revert to some form of not QE QE if the repo market shows signs of stress. Those who believe in the buy the news thesis anticipate that as soon as the Feds liquidity taps reopen, Bitcoins price will likely rebound from its current slump and possibly continue higher throughout 2025. Market watchers also recall how, during Trumps earlier presidency, the US dollar initially gained but quickly topped out. LondonCryptoClub noted that the market reacted this way last time Trump got elected and quickly the dollar topped out, suggesting that a similar scenario might play out again, with the dollar rallying briefly before weakening. Combined with the possibility of coordinated stimulus from major central banks, any sustained reversal in the dollar would likely spell good news for Bitcoin and the broader crypto market. At press time, BTC traded at $93,596. Featured image created with DALL.E, chart from TradingView.com

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US market drove Bitcoins volatility ahead of Trumps inauguration

Bitcoin experienced significant volatility in the days leading up to President Donald Trump’s inauguration on Jan. 20. The market saw sharp price swings the week before, with heightened activity from US traders during the weekend. Political uncertainty surrounding the inauguration and the launch of $TRUMP and $MELANIA memecoins added to the turbulence, pushing Bitcoin’s price […]

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This Analyst Correctly Predicted The Bitcoin Price Crash To $99,000, Heres Whats Supposed To Happen Next

A crypto analyst who accurately forecasted the Bitcoin price crash to $99,000 has now made another notable prediction for the pioneer cryptocurrency. While the analysts previously bearish projection was driven by volatility and waning market demand for Bitcoin, his new forecast sees the cryptocurrency skyrocketing to new highs above $110,000, fueled by its recent bullish performance.  Bitcoin To Retest Key Support As Next Move From a technical perspective, TradingView crypto analyst R.Linda has pinpointed the range between $102,500 and $100,000 as a critical support zone for Bitcoin. The analyst highlights that if Bitcoin can retest and maintain a price above this zone, it could set the stage for a potential market rally to new ATHs of $120,000 in the mid-term.  Related Reading: Bitcoin Upper Band Moves Above $105,400 Where Price Is Headed Next According to CoinMarketCap, Bitcoin is currently trading at $108,594, experiencing a dramatic 4.65% rise in the past 24 hours. R. Linda suggests that this recent price rally may result from strong accumulation and growing investor confidence. Given Bitcoins growing momentum, the TradingView market expert has set new resistance levels at $103,600, $105,700, and $107,500. She believes a successful breakout from these levels could propel Bitcoin to retest new bullish targets between the $108,000 and $112,000 range.  Despite correctly predicting the recent Bitcoin crash to $99,000, the analyst believes another failure to hold above the $100,000 mark could temporarily stall a price rally, with the possibility of a more resounding crash. R. Linda stated that Bitcoin may form a correction pattern, potentially experiencing a slight pullback to the 0.5 Fibonacci retracement level near $100,000, or even as low as $97,500. Moving ahead, Bitcoins overall trend remains bullish as long as its price quickly recovers from any projected declines and stays above critical support levels. The $102,500 level is highlighted as a pivotal price point expected to trigger Bitcoins bullish continuation.  Bitcoins Current Market Condition  According to R. Linda, Bitcoin surprised the market again by rallying more than 18% over the past week after surpassing previous support zones. The flagship cryptocurrency quickly reignited previous bullish sentiment after retesting the panic and risk zone when selling pressures significantly rose. Related Reading: Pundit Says Bitcoin Price Will Break Above $100,000 If This Happens This sharp price increase has been attributed to technical, fundamental, and macroeconomic factors. R. Linda has stated an increase in activity from institutional investors and the major players in the space. She suggested that Donald Trumps inauguration as the President of the United States (US) and speculations about favorable crypto policies under his administration have also significantly contributed to Bitcoins recent rebound.  The bullish combination has solidified Bitcoins position, creating a strong momentum that has attracted new buyers and increased institutional interest from players globally. R. Linda highlights that Bitcoins price action in the past three days suggests a strong consolidation and accumulation phase, where buyers aggressively defend the price area between $91,000 and $89,000. Featured image from Unsplash, chart from Tradingview.com

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US Bitcoin reserve odds skyrocket on betting markets

Kalshi bettors put the odds of Trump creating a Bitcoin reserve in 2026 at roughly 70%.

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FTX to begin distributing $1.2B to creditors after Trump inauguration

A significant portion of FTX repayments will likely be reinvested into cryptocurrencies, thanks to the promising growth prospect of the crypto market for 2025, industry insiders told Cointelegraph.

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Bitcoin consolidates below 20-day EMA, deeper pullback after $94K?

Bitcoin may experience short-term corrections up to and following the Jan. 20 inauguration of President-elect Trump in the United States.

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Bitcoins outlook remains bullish despite macro setback: Grayscale

The upcoming US presidential inauguration could be a positive catalyst, the asset manager said.

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Gala Games Offers VIP Tickets to MAHA Inaugural Ball in Washington D.C.

Gala Games is giving away VIP tickets to the MAHA Inaugural Ball in Washington D.C. on January 20, 2025, celebrating President Trump's historic victory. (Read More)

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