As the crypto bull run continues to stall, the Bitcoin (BTC) market remains in consolidation moving mostly between $101,000 – $106, 000 over the past two weeks. Interestingly, a market analyst with X username cryptododo7 has shared a potential pathway for BTC to reestablish its bullish momentum. However, this theory includes an initial significant price dip.
The Trump Effect: Why Bitcoin May Need To Return To $76,000
Based on his campaign promises, US President Donald Trump secured a substantial following in the digital asset space who yearned for a crypto-friendly administration.
Due to these expectations, Trump’s eventual victory as US President spurred Bitcoin to surge to $108,000 which was followed by a correction to below $90,000. Analyst cryptododo7 explains these movements were orchestrated by market makers who ensured BTC returned to $108,000 as Trump assumed office on January 20.
The analyst claimed these market makers utilized new market entrants who bought Bitcoin at high prices as exit liquidity. This market sale resulted in a fall in Bitcoin’s price as seen in both instances. With Bitcoin now stuck in a range-bound market, cryptododo7 states there is a need for the premier cryptocurrency to return to $76,000 in order to restart a new rally.
This prediction is based on technical factors such as the double top formation and the short-term Wyckoff Distribution Scheme, both of which indicate BTC is due for a major decline. However, cryptododo7’s selection of $76,000 as a potential target stems from multiple reasons including the fact that this price level serves as a strong support and liquidity mop-up zone having been a region of strong buying interest.
Furthermore, a pullback to $76,000 would finally allow the Bitcoin market to absorb the excess demands of new market entrants who previously bought at high prices. In addition, this price correction will present institutional investors to actively accumulate BTC against the next rally. Cryptododo7 predicts the next bull rally will definitely occur provided Bitcoin retests to $76,000 and finds sufficient support at this price level.
BTC Price Overview
At the time of writing, BTC trades at $99,659 after a 2.74% decline in the past day. Meanwhile, the asset’s daily trading volume has plummeted by 31.29% suggesting a significant decline in traders’ interest.
To make any significant uptrend, Bitcoin faces a major resistance at $106,0000, moving past which may push the asset to new price regions. With a market cap of $1.99 trillion, BTC remains the most valuable cryptocurrency boasting a market dominance of 58.6%.
Featured image from Unsplash, chart from Tradingview
