Bitcoin (BTC) recently fell below its 20-day exponential moving average (EMA), after reaching a high of $94,000 a few days ago. This decline heralds a strong period of correction, as investors prepare for the inauguration of Donald Trump.
Bitcoin scheduled to fall?
Bitcoin saw a significant decline falling to around $94,000 on January 11, 2025, a drop of over 8.5% from a local high of over $102,000 recorded on January 7. Currently, BTC is trading below its 20-day exponential moving average (EMA), which indicates that bearish factors are in control of the market.
The price of BTC is currently in a consolidation phase. The Relative Strength Index (RSI) is falling and sitting at 45, which is neither oversold nor overbought, but has fallen more than 20% since January 6. As a result, bitcoin and the crypto market could see a correction around Donald Trump's inauguration on January 20, with traders seeing this as a news selling event.
The future of the crypto market in the hands of Trump?
Arthur Hayes of BitMEX predicted that once investors realize that pro-crypto policies are taking time to be implemented by Trump, it would trigger massive sell-offs in BTC, followed by a general fall in digital assets. According to Ki Young Ju, these pro-crypto policies of Trump will depend on the economic situation of the United States, and the value of the US dollar which is currently gaining strength as a safe haven asset around the world.
However, analysts are optimistic about the long-term price of bitcoin, due to several macroeconomic factors. Notably, the increase in public debt, the devaluation of currencies around the world and the massive injection of liquidity by the FED.
Although indicators point to a violent correction period for bitcoin, the long-term outlook remains positive due to global economic factors. Investors must therefore remain vigilant and well informed to navigate these troubled waters.
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