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Bitcoin’s Price Discovery Phase: Is $109,588 Just the Beginning?

Bitcoin

KeyTakeaways:

  • Bitcoin surged past $100,000, hitting a new ATH of $109,588 after Trump’s inauguration.  
  • Analysts predict BTC is entering the second phase of its price discovery cycle.  
  • Short-term volatility expected, with a potential for further gains if certain announcements are made.

Bitcoin recently achieved a new all-time high (ATH), surging to $109,588 as the inauguration of the new crypto-friendly administration unfolded. While the market saw short-term volatility, Bitcoin reclaimed crucial support levels, fueling optimism for further price gains.

Bitcoin’s price made impressive gains leading up to and during US President Donald Trump’s inauguration. The token first surpassed the $100,000 mark, then continued consolidating above it, hitting a high of $106,000. 

Market sentiment remained strong, fueled by the surprise announcement of Trump’s official memecoin, which soared to an ATH of $75, only to face backlash from the crypto community. Despite this, Bitcoin held steady above key resistance levels.

The market saw a brief correction after the First Lady’s launch of the MELANIA memecoin, which caused BTC to dip below $100,000. However, it quickly recovered, closing the week near its newly reclaimed high. As Trump’s inauguration day approached, Bitcoin surged by 8.5%, reaching a new ATH of $109,588, signaling a renewed bullish sentiment.

Price Discovery Uptrend Continues

Several analysts, including Daan Crypto Trades, pointed out that Bitcoin’s strong start to the week, which saw it quickly filling a CME gap before hitting new highs, indicates a potential for continued price discovery. 

According to technical analysts, Bitcoin is entering the second phase of its price discovery cycle, following its initial surge after the December retrace. Rekt Capital emphasized that the first price correction in this phase appears to be over, with Bitcoin now primed for further parabolic upside.

Despite the potential for short-term volatility, crypto analysts such as Altcoin Sherpa remain optimistic. They suggest that Bitcoin could see price movement if certain developments unfold, such as President Trump’s Strategic Bitcoin Reserve announcement. This could catalyze a substantial rally, while a lack of mention could result in a temporary pullback.