Watch These Bitcoin Price Levels After Inauguration Day Volatility
Bitcoin (BTCUSD) set a new record high ahead of Donald Trump’s inauguration Monday but pared those gains as the new U.S. president, who has been a vocal supporter of the cryptocurrency market, made no mention of it during his inaugural address or other appearances after taking office.
Bitcoin has gained nearly 50% since the early-November election amid optimism that the Trump administration could reduce regulatory roadblocks, establish a bitcoin reserve and pursue other initiatives that promote the widespread adoption of digital assets.
After moving as high as $109,300 in the early-morning hours Monday, bitcoin was trading at $102,800 recently.
After climbing today to the all-time high, the price of bitcoin retreated to form a shooting star, a candlestick pattern that warns of a potential reversal. What's more, the shooting star followed a bearish engulfing pattern over the weekend, another candlestick pattern that warns of a move lower.
In further signs of waning price momentum, as today's peak made a higher high, the relative strength index (RSI) made a relatively shallower high to create a bearish divergence between the price and indicator, indicating a possible double top.
Let’s identify three key levels where Bitcoin could attract support during a retracement, but also look at important overhead areas that may come into play if the cryptocurrency’s price continues to move higher.
The first key lower level to watch sits around $92,000. This area could encounter support near the early-November peak that closely aligns with several pullback troughs that formed on the chart between late November and early January.
A close below this level may see a move down to the $87,000 level, a location on the chart where
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