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After a volatile, FUD-driven week, the weekend brought a stark contrast in market sentiment. The US DOJ-related fear seems to have subsided, and the focus has now shifted to the next significant event for Bitcoin: Trump's upcoming inauguration. Many anticipate this political event to act as a bullish catalyst for Bitcoin and the broader cryptocurrency space.
While the sentiment surrounding Trump's inauguration is optimistic, Bitcoin's current price action reflects lingering market uncertainty. The recent consolidation has established a defined range for Bitcoin, with a breakout in either direction likely setting the bias for the coming week. Currently trading within a $94K–$96K range, Bitcoin has used this pause to reset overheated metrics. The Bitcoin Fear and Greed Index now sits at 61 (Greed), down from last week's extreme greed reading of 76, reflecting a more tempered market sentiment.
Bitcoin is currently testing the upper boundary of this consolidation range. A breakout above $95.7K would not only confirm a potential low but could also set the stage for a rally toward $100K. The bullish sentiment surrounding Trump’s inauguration could further propel Bitcoin to reclaim its all-time highs in the weeks ahead.
During Bitcoin's consolidation, several altcoins have retraced, offering discounts across the board. Notable past Stormrake Spotlights, such as Sui and Ondo, have pulled back from their all-time highs, presenting potential buying opportunities for those seeking value. These retracements could set the stage for strong recoveries as market momentum picks up.
Stormrake Spotlight: Hyperliquid (HYPE) ($22.40)
Stormrake Spotlight: Hyperliquid (HYPE) ($22.40)
Hyperliquid (HYPE) has bucked the broader market trend, continuing its upward trajectory even as Bitcoin consolidates. After hitting a low of $18.34, HYPE has posted four consecutive days of green candles, gaining over 6% just today. Its resilience amid broader market uncertainty makes it a standout performer.
BTC/USD Key Levels and Price Action:
BTC/USD Key Levels and Price Action:
At $95.7K, Bitcoin faces significant resistance. This level coincides with both the 200 moving averages and a CPR (Central Pivot Range) level, creating a confluence zone that BTC must clear to sustain bullish momentum. A successful breakout could pave the way for a move to $100K, driven by renewed bullish energy.
BTC Total ETF Flows for 12 Jan: (data not available)
(ETF flow data is sourced from https://farside.co.uk/btc/ and reflects figures at the time of writing.)
ETH/USD Key Levels and Price Action:
ETH/USD Key Levels and Price Action:
Like Bitcoin, Ethereum has entered a consolidation phase, now attempting a breakout to the upside. Should ETH succeed, it could target the $3,370 level—a significant resistance point. Breaking this level would flip momentum back in favor of the bulls, but achieving this breakthrough won’t come easily given the confluence of resistance factors at play.
ETH Total ETF Flows for 12 Jan: (data not available)
(ETF flow data is sourced from https://farside.co.uk/eth/ and reflects figures at the time of writing.)
*All prices are denominated in USD unless stated otherwise*
Written by Alexandar Artis
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