The inauguration of Donald Trump as the next president of the United States passed off without the merest mention of Bitcoin or crypto. After a spectacular rally into the event, the Bitcoin price fell more than $7,000 from the new all-time high of $109,300, to end the day at $102,150.
A Bitcoinless Inauguration day
Trump’s special day was full of pomp, pride, and quite a bit of humour provided by a fun-loving president. All the family and invited guests were there to pay homage to the new president, and the event went off without any notable negative incidents.
That said, not only did President Trump not mention Bitcoin at all in his inauguration speech, but there wasn’t the merest hint of it. Of course, the president may have been playing safe for his first day, but those in the crypto lobby might have been disappointed.
In fact, in the first executive orders that were signed by Trump on Monday, there was a rescinding of the Biden-era policies on race, climate, migration and gender; a pause on the TikTok decision; a withdrawal from the Paris Climate Agreement, and the World Health Organisation; various pardons, and other first-day business, but nothing at all on Bitcoin or crypto.
With all that President Trump has previously said about a more favourable US policy on Bitcoin and crypto, and that this is likely to have an effect on the financial system, it certainly might have been expected that at least a mention would have been made of it.
Perhaps as a result of Bitcoin playing no role in the inauguration, or maybe due to the “sell the news” effect on the market, Bitcoin fell steadily through the latter part of the day.
Large volatility over Sunday and Monday
Source: TradingView
The 4-hour time frame for $BTC shows the large volatility over the course of Sunday and Monday. The huge spikes down to test the top of the wedge, then up to $109,000, and back down again, bear testament to how frenzied the market was over this period.
The good thing as far as Bitcoin investors go is that the price is holding above the descending trendline of the wedge. In fact, as well as testing the top of the wedge, the price came down perfectly to the 0.5 Fibonacci. The price is now holding above the horizontal support and the 0.382 Fibonacci. It might be expected that the price rises from here.
The bearish scenario is that the price falls back down to $99,000, or even back into the wedge. The Fibonacci levels match up well with the existing horizontal supports. The ascending trendline below would act as a final support.
Early concerns on the weekly time frame
Source: TradingView
While it is still very early in the week, there is some slight concern in the Stochastic RSI at the bottom of the weekly chart. The indicator lines were displaying a cross to the upside on Monday, but have since crossed back. Nevertheless, there is still plenty of time for the cross up to happen again.
In the weekly price action, $BTC will need to climb back up the longish wick to the upside. With the short term Stochastic RSIs on their way back down, there could be enough momentum going into the latter part of this week to enable this to happen.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
