Bitcoin (BTC) price has experienced a 2.5% drop in the past 24 hours, trading at approximately $102,323 on Thursday, January 22, during the mid-London session. After closing Wednesday in a somber black Marubozu candlestick, the flagship cryptocurrency has signaled further short-term weaknesses, possibly due to the ongoing cooling down of the leveraged market, following Donald Trump’s inauguration earlier this week.
In the daily time frame, Bitcoin price, when measured against the US dollar, has been forming a potential double top, coupled with a falling divergence of the Relative Strength Index (RSI). In the four-hour time frame, Bitcoin price has formed a possible head and shoulders (H&S) pattern, accompanied by a bearish divergence of the RSI.
Consequently, if Bitcoin price breaches the support range between $101K and $99.5K, the likelihood of a short-term selloff to $91K will be higher. Furthermore, the BTC price has been forming a potential horizontal consolidation channel since mid-December, which could evolve in the coming months to a different pattern.
Nonetheless, Bitcoin price could rebound from the support range between $101K and $99.5K and rally towards a new all-time high in the near term.
Whale Investors Bet on Imminent Bitcoin Price Rally
Despite the short-term Bitcoin price action, the overall supply of BTC on centralized exchanges has continued to drop exponentially. In the last seven days, the overall supply of BTC on CEXes dropped by nearly 21K to hover about 2.18 million at the time of this writing.
Institutional investors led by MicroStrategy Inc (NASDAQ: MSTR), which recently purchased 11K BTCs to currently hold over 460K coins, have continued to accumulate more BTC to hedge against global inflation. Interestingly, the World Liberty Financial (WLFI) project, which is largely associated with the Donald Trump family, has continued to purchase more BTCs, among other digital assets.
Meanwhile, the US spot BTC ETFs, led by BlackRock’s IBIT, registered a net cash inflow of about $248 million on Wednesday, thus currently holding a total net assets of over $122 billion.
Market Picture
Following the inauguration of pro-crypto US President Donald Trump earlier this week, traders are now closely monitoring the market data, which could impact the Federal Reserve’s decision on rate policy next week. On Friday, the Bank of Japan (BoJ) will release its first policy rate change of 2025, with economists predicting a 25 bps hike to 0.5%.
Later during the day, several EU countries, the United Kingdom, and the United States will be releasing their respective Flash Manufacturing PMI.
Meanwhile, rising talks by more nation-states to implement a strategic Bitcoin reserve, led by the United States, will have a long-lasting impact on the BTC price action.
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2025-01-23 13:30