The BTCUSD exchange rate stabilized on Tuesday near the all-time high of $93,265.63 reached last week. Bitcoin’s rapid growth above $70,000 started on November 6, the day Donald Trump won the US presidential election. On the campaign trail, he emphasized the importance of supporting the cryptocurrency market, trying to secure the loyalty of voters. Throughout the week after the election, the number one cryptocurrency updated all-time highs daily, bringing a sense of euphoria and excitement to cryptocurrency exchanges.
Record investment in the crypto market remains impressive, with $1.98 billion flowing into crypto funds over the past week, bringing the total inflows since the beginning of the year to $31.3 billion. Crypto funds currently have $116 billion under management, keeping investor interest high.
Bitcoin’s price stabilization points to traders’ caution after a period of euphoria. Market participants are assessing the impact of President Donald Trump’s political agenda. Inflation risks in the US are increasing due to the prospect of trade tariffs and deficit-spending to fund tax cuts. A possible Federal Reserve interest rate cut in a stable economy could limit cryptocurrency growth, as improved liquidity can reduce speculative demand for digital assets.
Technical analysis of the BTCUSD shows the formation of a new uptrend on the daily timeframe (D1). However, the current growth can turn into a correction. The price have rolled back from the trend resistance, although clear channel lines are still being formed. The RSI indicator is above 70, which means that the asset is overbought and the probability of a downward correction is high.
Short-term prospects for BTCUSD suggest a price decline to the target at 80,000. Part of the profit should be taken near the level of 85,500.00. A Stop loss could be set at 97,000.00.
Since the bearish trend is of a short-term nature, the trading volume should not exceed 2% of the total balance to reduce risks.
