Bitcoin price today: $99,200
- Bitcoin price extended its recovery on Monday after jumping nearly 5% in the previous week.
- A report by 10xResearch suggests that BTC could approach its all-time high of $108,353 before Trump’s inauguration.
- Institutional demand for Bitcoin is showing slight signs of recovery after being skewed for the past three weeks.
Bitcoin (BTC) is trading in the green on Monday at around $99,200 after a nearly 5% recovery in the previous week. A report by 10xResearch suggests that BTC could approach its all-time high (ATH) of $108,353 before Trump’s inauguration. Moreover, institutional demand for Bitcoin showed a slight recovery from last week’s $255.2 million inflows after being skewed over the past three weeks, hinting at continued growth.
Bitcoin could regain its all-time high value ahead of Trump’s inauguration
Bitcoin price returns to $99k on Monday after a nearly 5% recovery in the previous week. According to a report by 10xResearch, the price of Bitcoin for January is highlighted.
“While initial enthusiasm is expected at the start of the New Year, this is not the time for the same level of growth that we experienced from late January to March 2024 or from late September to mid-December,” said the 10xResearch analyst.
The report explains that Bitcoin could have a positive start to the year, followed by a slight pullback leading up to the release of the US Consumer Price Index (CPI) on January 15, as shown in the chart below. A favorable inflation footprint could reawaken optimism, fueling a rise ahead of Donald Trump’s January 20 presidential inauguration. However, this momentum could weaken, with the market likely to pull back somewhat ahead of the January 29 FOMC meeting.
Predicted Bitcoin Trajectory for January 2025 Source: 10xResearch
The report goes on to explain that trading volume has fallen significantly, returning to pre-US presidential election levels. Binance’s spot volume fell to $12 billion, down sharply from a peak of $65 billion.
Another metric to pay attention to is total inflows. According to 10xResearch, $129 billion in total inflows were recorded over the past year, with $62 billion from stablecoins, $35 billion from exchange-traded funds (ETFs), and $32 billion from increased perpetual leveraged futures. As retailers return from the holidays, monitoring the evolution of these inflows will be key.
Bitcoin (LHS) vs Money Flow Indicator Chart. Source: 10xResearch
A bullish view of institutional demand shows a slight sign of recovery after the distortion of the past three weeks, likely due to the holiday season. According to Coinglass, data on Bitcoin Spot ETFs saw total net inflows of $255.2 million last week, following outflows of $377.6 million the previous week. However, as traders and investors return, this dynamic could shift significantly, leading to larger inflows, as seen in early December.
Chart of Total Bitcoin Spot ETF Net Inflows. Source: Coinglass
Bitcoin Price Forecast: BTC recovers and seeks $99k
Bitcoin price found support around the 38.2% Fibonacci retracement level, pulled back from the November 4 low of $66,835 to the December 17 high of $108,353, to $92,493 on December 30, 2024 and it rose 6% over the next six days. This level roughly coincides with the 50-day exponential moving average (EMA) at $94,182, making it a key zone. At the time of writing on Monday, BTC was trading around $99,200.
If BTC continues its upward momentum, it could extend its rally to retest its key psychological importance level of $100,000. A successful close above that level would extend further upside to retest its December 17, 2024 all-time high of $108,353.
The relative strength index (RSI) on the daily chart is at 56, above its neutral value of 50, and is pointing upwards, suggesting bullish momentum is gaining strength. Additionally, the moving average convergence divergence (MACD) indicator on the daily chart reversed a bullish crossover on Sunday, signaling a buy signal and continuation of the uptrend.
BTC/USDT Daily Chart
However, if BTC closes below the $92,493 level, it would extend the decline to retest its key support level at $90,000.
Frequently Asked Questions About Bitcoins, Altcoins, Stablecoins
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any person, group or entity, which eliminates the need for third-party involvement during financial transactions.
An altcoin is any cryptocurrency other than Bitcoin, but some also consider Ethereum a non-altcoin because the two cryptocurrencies are forking. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, its “improved” version.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by the reserve of assets they represent. To achieve this, the value of any stablecoin is tied to a commodity or financial instrument, such as the US dollar (USD), whose supply is regulated by an algorithm or demand. The main goal of stablecoins is to enable investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value as cryptocurrencies are generally subject to volatility.
Bitcoin dominance is the ratio of the market capitalization of Bitcoin to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin interest among investors. BTC’s high dominance usually occurs before and during a bull run, in which investors resort to investing in a relatively stable, high market cap cryptocurrency like Bitcoin. A decline in BTC’s dominance usually means that investors move their capital and/or profits into altcoins in search of higher returns, which usually causes an explosion of altcoin growth.
