Bitcoin Holds $100K Amid Market Volatility Following Trump Inauguration

Bitcoin flirted with the $100,000 support level earlier on January 21, as market participants processed the aftermath of President Donald Trump’s inauguration. Despite initial hopes, the historic day lacked any mention of Bitcoin or a U.S. strategic reserve tied to cryptocurrency, leaving traders focused on technical levels and liquidity sweeps.

Key Levels After Inauguration Volatility

Data from TradingView highlighted persistent seller pressure around the six-figure mark, keeping traders on edge. “Bitcoin is targeting the nearest liquidity on both sides,” stated Hyblock Capital in an update on X, reflecting widespread anticipation of another sweep toward $97,000 or even $96,000.

Popular trader Crypto Chase outlined his strategy for the current market conditions, signaling a potential long position near $99,500 if the price dips. “I’d also accept a sweep of the 97K low, but that’s as far as it should go. Any sustained drop below that, and my plan is invalidated,” he cautioned, aiming for a new all-time high if support holds.

Similarly, trader XO pointed to December’s price range as a key metric, with highs near $108,000 and lows at $90,000. “Acceptance out of either side will likely lead to a trend, but until then, we remain range-bound,” they explained.

Technical Indicators Signal Imminent Breakout

Amid the choppy price action, analysts are turning to key indicators for signs of a breakout. Matthew Hyland, a trader and market analyst, stressed the importance of Bitcoin’s 10-day simple moving average (SMA), currently holding just under $100,000.

“Tapping the 10 SMA, reaching new all-time highs, and then pulling back below resistance shows the market is at a decision point,” Hyland noted. “By Friday, Bitcoin must either reclaim upward momentum or risk losing support at the 10 SMA.”

Adding to the intrigue, James Check, the creator of on-chain analytics platform Checkonchain, highlighted the Choppiness Index, a volatility tool that suggests an imminent shift. “The Bitcoin Choppiness Index is fully charged and ready to trend,” Check observed, predicting the end of the consolidation phase.

While Trump’s inauguration delivered little for crypto bulls in terms of policy signals, traders are optimistic about a potential rally in the near term.