Bitcoin ‘Trump trade’ finished until BTC breaches key $98K resistance
Bitcoin’s upside momentum from the so-called “Trump trade” may have come to an end until the world’s first cryptocurrency breaches the key $98,000 resistance.
The Bitcoin ( BTC ) price rejected the $96,000 level in four consecutive attempts before falling to $94,812 as of 11:39 am UTC on Dec. 3, Cointelegraph data shows.
BTC/USD, 1-day chart. Source: Cointelegraph
Bitcoin may not see significant upside momentum until it crosses the $98,000 resistance, according to crypto trader, analyst and entrepreneur Michaël van de Poppe, who wrote in a Dec. 3 X post :
“Bitcoin still patiently waiting to break $98,000 to get ourselves into the magic wonderland of $100,000+ [...] might take some time. If we do dip, regardless, then my areas stay unchanged.”
BTC/USD, six-hour chart. Source: Michaël van de Poppe
Before the 2024 United States presidential election , some analysts said that Bitcoin was used as a proxy trade for Donald Trump’s election victory , but the rally lacked the fundamental macroeconomic conditions to result in a new all-time high for Bitcoin, which rose to a record $99,800 on Nov. 22, two weeks after Trump’s victory.
Related: Bitcoin was pronounced dead 415 times, now it battles for $100K
Bitcoin needs to breach $98,000 to claim $100,000 new high
Still, crypto analysts increasingly see the six-figure valuations as a matter of time for Bitcoin price.
Bitcoin could hit a $110,000 local top in January 2025 based on its correlation with the Global Macro Investor’s Total Liquidity Index, which offers an aggregate view of all major central bank balance sheets.
GMI total liquidity index, Bitcoin (RHS). Source: Raoul Pal
Based on technical chart patterns, Bitcoin could beach $110,000 after clearing the $98,000 resistance, according to pseudonymous analyst DonAlt, who wrote in a Dec. 2 X post :
“Probably giga sends on a close above $98k towards $110k. Probably wipes everyone on a dip to $80k if it loses $90k.”
BTC/USD, 1-day chart. Source: DonAlt
However, the analyst added that Bitcoin could continue to trade in its current range without a significant movement to either side.
Related: Ether to breach $4K before Trump’s inauguration — Analyst
Bullish signal: short-term holders stop selling Bitcoin
Bitcoin short-term holders (STHs) stopped selling Bitcoin, which is a promising sign for price trajectory since STH selling patterns are decisive for Bitcoin’s momentum in the short term.
STH selling was the reason Bitcoin failed to breach $100,000 in November, according to Sina G, co-founder and chief operating officer of 21st Capital, who wrote in a Dec. 2 X post :
“We were rejected pretty hard from $100K because STH took profits, as evidenced in SOPR spike. High SOPR = High profit-taking. But they have stopped taking profits.”
BTC: Short-term holder SOPR. Source: Sina G.
Bitcoin price may also benefit from $2 trillion of investments in 2025 , as it may absorb around 10% of the newly created money supply, which is expected to rise to $127 trillion due to the US Federal Reserve’s liquidity concerns.
Magazine: Is Bitcoin heading back to $90K? Solana ETFs, and more: Hodler’s Digest, Nov. 17 – 23
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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