Bitcoin price resumed its bullish trend and neared its all-time high of $108,200 ahead of Donald Trump’s inauguration and after the encouraging U.S. inflation data.
Bitcoin (BTC) rose to a high of $105,847, its highest level since Dec. 18, and significantly higher than this week’s low of $82,055.
Crypto investors are likely cheering the upcoming Trump inauguration and the potential regulatory changes that could follow. Trump has pledged to be a crypto-friendly president and seeks to make the U.S. the crypto capital of the world.
While the U.S. already mines the most cryptocurrency, crypto critics often cite Bitcoin’s energy-intensive proof-of-work mining process as being at odds with energy conservation initiatives.
Trump, who recently launched his own meme coin, also runs World Liberty Financial, a crypto project that has raised millions of dollars, including from Justin Sun.
His administration also wants to prioritize cryptocurrencies, a move that may lead to substantial inflows. All spot Bitcoin ETFs added $755 million and $626 million in inflows in the last two days, bringing the cumulative flows to $38 billion.
The odds that Trump will create a strategic Bitcoin Reserve in the first 100 days of his administration spiked to 42% from this year’s low of 20%.
Another potential catalyst that will push Bitcoin price to a record high is the ongoing stablecoin inflows. CryptoQuant data shows that stablecoins have continued to flow into exchanges. This is notable since stablecoins are used to buy Bitcoin and other coins.
Bitcoin price has strong technicals
The weekly chart shows that Bitcoin price has done well this week. It has formed a bullish engulfing pattern, a popular positive sign. This pattern comprises a big bullish candlestick that covers a previous bearish candle completely.
Bitcoin has also formed a bullish pennant pattern consisting of a long vertical line and a symmetrical triangle. This pattern often leads to a strong breakout, as we saw with Ripple (XRP) this week.
XRP was forming a pennant pattern since November last year.
Bitcoin remains above the 50-week and 100-week moving averages. It has also moved much higher than $68,930, the upper side of the cup and handle pattern that formed between 2021 and November last year.
Therefore, Bitcoin will likely have a strong breakout and move to its all-time high of $108,200. A break above that level may see it jump to the next psychological point at $100,000.
