Key Insights
- Bitcoin has reacted to key bits of news this week, and managed to hit the $106,000 level.
- One of the biggest drivers of this bullishness was the executive order from Donald Trump, specifically for the crypto market.
- The institutional investors have taken this news well, buying around $3 billion in Bitcoin since 15 January.
- BlackRock also recently bought $600 million worth of Bitcoin, despite the possible $20 billion Bitcoin offload from China.
The price off Bitcoin entered an interesting uptick between Thursday and Friday this week, after jumping over 3% to the $105,750 zone as of January 24.
This increase came notably around the time that US President Donald Trump signed the famous executive order to establish a strategic digital asset reserve.
Executive Order Spurs Optimism in Crypto Markets
This week on 23 January, US President Donald Trump signed an executive order, to create a working group—specifically for digital asset markets.
This directive is aimed at checking out how feasible the creation a national crypto stockpile could be.
In essence, this signals an incoming government recognition of cryptos—a highly bullish scenario that has been speculated on for years.
While the order doesn’t explicitly confirm Bitcoin as part of the strategic reserve proposal (that may eventually be rejected), it has done much to reinvigorate Bitcoin investors.
Notably, US Senator Cynthia Lummis teased on social media about “big things coming,” as investors bought into Bitcoin and drove prices further up.
Institutional Interest and ETF Inflows
The US spot Bitcoin ETF market also experienced an uptick in inflows, after nearly $3 billion worth of investments flowed in since 15 January according to Farside.
This shows that the institutional Bitcoin investors are just as excited about this development as the retailers.
It also shows Bitcoin’s increasing recognition as a long-term investment, especially among the large-scale investors using the ETFs to participate in the market.
Technical Indicators Predict a Bullish Future
From a technical perspective, Bitcoin recently broke out of the symmetric triangle shown below.
This means that while prices may be sluggish, Bitcoin is still on track for bullishness.
This pattern shows that the cryptocurrency could be poised to continue further up and challenge the $109,000 zone soon.
Once this resistance gives way, Bitcoin has a nearly straight road upwards to anywhere between $125,000 and $128,000 by March 2025 at the latest.
Bitcoin’s key support sits somewhere around $101,000 with a minor resistance around $106,000 and a slightly stronger one between $109,000 and $110,000.
If the cryptocurrency breaks below the $101,000 support zone, Bitcoin could drop further down to the $94,000–$96,000 range and trigger billions of dollars worth of liquidations.
Political and Institutional Dynamics
The executive order has also generated a lot of buzz on social media.
However, while the announcement itself is as bullish as can be, its lack of an explicit Bitcoin mention as a reserve asset has led to cautious optimism.
In the meantime, institutional investors continue to stack up on the cryptocurrency, with BlackRock recently acquiring around $600 million worth of the cryptocurrency.
Meanwhile, there have been reports of a $20 billion Bitcoin sell-off by China from the PlusToken seizure according to Yahoo! Finance.
Bitcoin’s performance over the next few days could depend strongly on its ability to avoid breaking below the $101,000 price level.
Ultimately, its behavior between $94,000 and $106,000 could play a major role in what comes next for the flagship cryptocurrency.
