Bitcoin (BTC/USD) Analysis: Trump Impact, Whale Activity & Price Predictions
Bitcoin’s price faltered post-Trump’s event presentation due to unmet expectations for new policies. New whale investors have amassed significant holdings, yet market liquidity is weakening. Recent ETF flows indicate declining demand, maintaining a bearish market trend. Technical analysis shows essential resistance and support levels will dictate Bitcoin’s near-term direction.
The recent performance of Bitcoin (BTC/USD) has raised several analytical points following President Trump’s appearance at a crypto event. Despite initial bullish sentiment fueled by the expectation of policy announcements, the price of Bitcoin faltered. Market reactions suggested that participants anticipated new directives, yet Trump’s remarks did not materialize into actionable policy, leading to a decline in market momentum.
Since late November, a new cohort of wealthy investors, referred to as “whales,” has significantly accumulated Bitcoin, acquiring over one million coins. These individuals, typically new to the market, seek quick profits rather than long-term investments. Market analysts posit that such acquisitions often indicate an imminent price rise based on previous buying strategies.
On-chain data from Glassnode indicates a gloomy pricing outlook, revealing a contraction in liquidity. Recent reports indicate that long-term holders remain inactive, contributing to reduced trading activity. The Realized Cap’s slow growth further signifies a lack of new investment, indicating potential price stagnation.
Bitcoin ETF flows recorded a net outflow of $6.4 million after a brief period of inflows, reaffirming the weakening demand trend observed in the market. This fluctuation, alongside the market’s dynamics, reflects uncertainty and potential risks in both cryptocurrency and global markets.
From a technical perspective, Bitcoin’s price currently resides within a bearish trend. To reverse this trajectory, a daily candle close above $90,000 is necessary. However, recent trading has shown a downward correction below the 200-day moving average, and key support levels have been established around $82,133 and $80,000. Resistance levels remain at $85,000, $86,845, and $90,000, indicating that Bitcoin’s future movement hinges on critical price thresholds.
In conclusion, Bitcoin’s current market activity reflects a combination of new whale investments and a lack of sustained bullish momentum following President Trump’s recent comments. On-chain analytics reveal a contraction in liquidity and diminished trading interest among long-term holders. Additionally, the abbreviated period of ETF inflows indicates unfavorable market conditions, reinforcing a bearish outlook. For Bitcoin to shift its trajectory, it must surpass established resistance levels and regain investor confidence.
Original Source: www.marketpulse.com
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