Chart of the day - BITCOIN (23.01.2025)

Despite positive signals from the new administration in the United States, we are seeing declines on BITCOIN, and almost entire cryptocurrencies market, where SOLANA loses almost 5%.

• The reason why this is happening seems to be the lack of communication regarding the creation of a Bitcoin strategic reserve. The lack of information regarding whether the United States will really agree to 'focus an additional 1 million BTC from the market' is causing the market to 'not settle' for communication regarding the creation of new, friendly regulations for the sector, or even investment activity from the Trump family's World Liberty Financial.
• Also, high demand from ETFs is not stopping the BTC market from slowly returning to 'risk aversion'. In yesterday's session, ETFs accumulated nearly $250 million in BTC, slowing net inflows after a strong buying streak that has lasted for the past 5 sessions.
• On the other hand, a change in sentiment is possible at any time once the new administration communicates something more to the markets about BTC's strategic reserve. We know today that the new leadership at the SEC has appointed a new special group of regulators who will be tasked with creating a transparent regulatory framework for cryptocurrency companies.

BITCOIN chart (D1 interval)

The price of Bitcoin is retreating another 2% today, retreating nearly 8% from historic highs above $109,000. Looking at the chart, we see a potentially bearish double peak formation. The price touched the EMA100 (black line) after which it rose dynamically by nearly 20%. Currently, the key support level is around the psychological level of $100k and $98k where we see the average EMA50 (orange line) and the 23.6 Fibonacci retracement of the upward impulse from November 5. The average of short-term traders now stands at $90 thousand and continues to provide strong medium-term support. On the other hand, the vicinity of $107 - $109 thousand is a key resistance level, after crossing which the road to $120 thousand may be opened.

Source: xStation5