TLDR
Bitcoin reached a new all-time high of $109,356 on Trump’s inauguration day
Crypto market saw $1.2 billion in liquidations, with short sellers losing $900 million
Market sentiment is in “extreme greed” with 15,170 BTC ($1.5B) pulled from exchanges
Technical analysis suggests next targets between $142,000-$148,850
Trump’s pro-crypto stance and recent inflation data driving positive market sentiment
Bitcoin reached a new all-time high of $109,356 on January 20, 2025, coinciding with Donald Trump’s second presidential inauguration. The leading cryptocurrency gained nearly $10,000 in value within a single hour, marking a 5% increase that rippled through the entire crypto market.
The rapid price movement caught many traders off guard, particularly those holding short positions. Data from CoinGlass reveals that bearish traders suffered losses exceeding $100 million in just one hour, with Bitcoin shorts accounting for more than $60 million of these liquidations.
The broader crypto market experienced total liquidations of $1.2 billion over 24 hours, with short sellers bearing the brunt of the losses at $900 million. This massive liquidation event underscores the market’s strong bullish momentum.
Bitcoin’s journey to this new peak began just a week ago when it touched $89,000, its lowest point in over six weeks. The subsequent 17% rally demonstrated the market’s resilience and buying pressure, particularly from both retail and institutional investors.
The surge in price coincides with positive macroeconomic indicators, including a favorable CPI report showing easing inflation pressures. This data, combined with the political transition, has created favorable conditions for crypto markets.
Market data shows that 69,790 addresses currently hold 82,120 BTC, purchased at an average price of $106,880. These holders are now approaching profitability as the market pushes toward new heights.
Exchange flows indicate strong buying pressure, with over 15,170 BTC (approximately $1.5 billion) withdrawn from exchanges at the $104,000 price level. This movement of funds off exchanges often suggests long-term holding intentions rather than immediate trading plans.
Technical analysis points to potential further upside, with the next major resistance levels identified between $142,000 and $148,850. The daily Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) indicators suggest room for continued growth, as they haven’t yet reached overbought territory.
The incoming Trump administration’s stance on cryptocurrency appears to be influencing market sentiment. The President-elect has expressed intentions to position the United States as a leader in crypto innovation, contributing to positive market expectations.
The rally has extended beyond Bitcoin, with other major cryptocurrencies including Ethereum, XRP, and Solana all rising by more than 3% during the same period. This broad market participation suggests widespread optimism across the crypto sector.
Currently, the market sentiment indicator shows “extreme greed,” reflecting high investor confidence. This sentiment is evidenced by the potential for 4.72 million BTC, purchased at an average price of $88,396, to create approximately $417 billion in market liquidity.
Wave analysis indicates Bitcoin may be in the fifth and final wave of an increase that began in December 2022. This pattern suggests the possibility of continued upward momentum before any major correction.
The rally has occurred despite some capital flowing into alternative investments, including Trump-related memecoins. The TRUMP token, for instance, saw a 260% increase in the past 24 hours, highlighting the broader market enthusiasm.
The market’s technical structure remains strong, with Bitcoin successfully breaking above the previous resistance area at $106,000 after forming a bullish engulfing candlestick pattern. This technical breakthrough adds weight to the possibility of continued upward movement.
