A recent analysis of Bitcoin’s market performance highlights a “power of 3” pattern which suggests that the cryptocurrency’s value could surpass $100,000 before President-elect Donald Trump officially assumes office on January 20. This bullish trend has emerged as Bitcoin’s value increased by 11.5% from its January 13 low of $88,900, breaking above a previous resistance range between $95,350 and $96,150. The price movement forms part of a bullish engulfing pattern seen on the daily chart.
Contributing to this surge, favorable consumer price index (CPI) data on January 15 has driven Bitcoin close to the $103,000 mark. The “power of 3,” known as AMD, involves phases of accumulation, manipulation, and distribution, offering an understanding of how market participants operate against retail traders at specific levels.
Between January 9 and January 13, Bitcoin went through an accumulation phase. The manipulation phase occurred with a brief liquidity sweep on January 13, driving down the price which quickly rebounded. Entering the distribution phase, Bitcoin’s price is now ascending towards the opposite side of the recent manipulation range.
Bitcoin’s trend suggests potential growth, with a current high at $102,750. Analysts predict a further 6.5% increase this week, aligning with Trump’s imminent inauguration. Noteworthy Bitcoin enthusiast AlphaBTC cited a “hot zone” at this price level, suggesting a heightened possibility for further growth but also warned of a potential drop to $80,000 if the $103,000 mark is not sustained.
Market sentiment was bolstered by U.S. Producer Price Index data on January 14 showing inflation resilience, spurring a rally across risk assets like equities and cryptocurrencies. Commentator Momin Saqib anticipates Bitcoin reaching new all-time highs within weeks, irrespective of macroeconomic conditions, foreseeing a target range between $101,000 and $102,000.