Donald Trump was sworn into office as President of the United States yesterday.
However, Trump’s failure to make a statement about cryptocurrencies at the inauguration ceremony and his failure to sign the expected decree on Bitcoin (BTC) and cryptocurrencies caused sharp declines in the crypto market, especially Bitcoin.
While some experts say that uncertainty about Bitcoin and cryptocurrencies’ decrees is increasing the pressure on prices, Matrixport analysts say that BTC still has significant upside potential in the short term.
Cryptocurrency analysis platform Matrixport shared the January 21 chart in its analysis from the X account, saying that Bitcoin has been trading in an increasingly narrowing wedge range since mid-November of last year.
Stating that higher-than-expected inflation data and the FED’s hawkish stance affected market sentiment, Matrixport analysts said that in the face of these negativities, positive expectations that Trump would launch a potential Bitcoin reserve provided support to the BTC price and prevented a larger pullback.
Analysts noted that Bitcoin was consolidating within the wedge range until Trump’s inauguration on January 20, indicating that this was a bullish signal for BTC.
Noting that BTC is currently retesting the breakout level that coincides exactly with the upper boundary of the wedge range, Matrixport analysts emphasized that if BTC can maintain this important support level, there is still significant bullish potential in the short term.
“Since mid-November, Bitcoin has been trading within a narrowing wedge.
On the negative side, they include higher-than-expected inflation and a more hawkish Federal Reserve.
On the positive side, optimism around President Trump potentially establishing a Strategic Bitcoin Reserve helped maintain momentum and prevent a deeper decline.
The consolidation inside the wedge continued until Trump’s inauguration and served as a catalyst for Bitcoin to make an upward breakout – a bullish signal.
“Bitcoin is now retesting the breakout level corresponding to the upper boundary of the wedge. If Bitcoin holds above this key support, the short-term outlook remains very bullish, and the breakout signals renewed upward momentum.”
*This is not investment advice.
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