Market Volatility and Trader Sentiment

According to TradingView, Bitcoin reached its highest point at $109,356 on Bitstamp. Although the market indicated strength, analysts have some concerns about future risks. Some liquidation issues on exchanges such as Binance may indicate a price reversal, especially to late investors who may be holding positions at the highest price. High liquidation volumes evidence this volatility. More than $1bn in longs have been liquidated in the last day, underlining the perils of trading during this bullish phase.

According to the crypto influencer Skew, the supply barriers are still substantial at the current levels, and strong buying pressure is needed to drive the prices higher. However, other traders welcomed the breakout of Bitcoin from the $970 – $1,030 range it had been trading in for a month now as a positive sign that the market was strong.

Trump’s inauguration day could become a turning point for the cryptocurrency market. If pro-crypto policies are to be implemented, Bitcoin’s upward trend may be further solidified.