Bitcoin’s price has seen volatility and rapid gains, especially after notable political events. For example, on the night Donald Trump secured his victory in the 2024 election, Bitcoin rose to an all-time high of $75,000. Since then, the price has continued to rise, reaching a peak of $88,000, marking a massive rally in the cryptocurrency market.
A contrarian play or the start of a new bull market?
Despite initial speculation that Bitcoin’s price surge following Trump’s victory could represent a “buy the rumor, sell the news” scenario, the market has defied expectations. Instead of selling off, Bitcoin has continued its upward momentum. At the time of writing, Bitcoin’s price stands at $88,800, indicating that the market may be pricing in further gains rather than a pullback.
This situation is indicative of Bitcoin’s continued status as a risky asset, moving in tandem with the broader stock market. According to Gareth Soloway, chief market strategist at Verified Investing.com, Bitcoin will likely continue to trade alongside risky assets, including stocks. In one interview with David LinHe said that as long as the stock market remains strong, Bitcoin will likely experience upward pressure as well.
Technical analysis: Bitcoin’s trajectory
Looking at the Bitcoin price chart, we can see a consistent uptrend since the summer of 2023. Although some consolidation has occurred, Bitcoin is now trading within a bullish channel. He said that if Bitcoin maintains this pattern, the cryptocurrency could continue its rise – possibly reaching $100,000 in the coming months.
Soloway points out that there may be pullbacks along the way, especially around key resistance levels. For example, $86,000 appears to be a key level at which profit-taking could occur. If Bitcoin reaches this price, it could undergo a brief correction towards $74,000 before continuing its upward trajectory.
What to expect in the coming months
Looking at Bitcoin’s current chart, it is clear that the cryptocurrency is in a phase of bullish consolidation. This generally indicates that Bitcoin could make another strong upward move after a period of sideways movement. The next few months will likely be crucial in determining whether Bitcoin can push past $100,000 or undergo a retracement.
In terms of downside risk, the first major support level for Bitcoin is around $74,000. If Bitcoin fails to hold this level, it could face further declines towards the $58,000 range, where the next major support lies.
