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20.01.202516:00 Forex Analysis & Reviews: Cryptocurrency Trading Recommendations for January 20th

Relevancia 06:00 2025-01-21 UTC--5

Market Overview

Today, Bitcoin reached a new all-time high, nearing the $110,000 level. Ethereum is also trading in positive territory, though its gains are more modest.

Recent data indicates weekly inflows into cryptocurrency products totaled $2.2 billion, a sharp increase from $48 million the previous week. Over the past trading week:

  • Net inflows into spot BTC ETFs reached $1.862 billion, up from $312.8 million the week before.
  • Net inflows into spot ETH ETFs totaled $212 million, reversing an outflow of $186 million from the prior week.

Exchange Rates 20.01.2025 analysis

Institutional Interest in Bitcoin

Experts at Standard Chartered highlight that spot BTC ETF inflows from "long-term money" sources, such as pension funds and long-only funds, have yet to begin. This suggests significant growth potential for Bitcoin and the broader cryptocurrency market. Drawing parallels to the launch of gold ETFs, some leading experts project a BTC price target of $200,000 by the end of 2025.

Institutional inflows, especially from pension funds, could drastically shift the cryptocurrency market dynamics. These long-term investments provide a more stable foundation for Bitcoin's growth, similar to the transformative impact gold ETFs had on the gold market.

Impact of the Trump Administration

Trump's idea of establishing a U.S. cryptocurrency reserve has gained traction, further fueling demand in the cryptocurrency market. Large investors ("whales") have significantly increased holdings in Ethereum and Solana, despite the crypto reserve concept still being in the debate stage. If implemented, such a reserve could inject billions of dollars into cryptocurrencies.

Trading Strategy

For short-term trades, the focus remains on leveraging significant pullbacks in Bitcoin and Ethereum, with an eye toward sustaining the medium-term bullish trend.

Exchange Rates 20.01.2025 analysis

Bitcoin Trading Scenarios

Buying Scenarios

Scenario 1: Buy Bitcoin at $109,000 with a target of $113,000. Exit purchases at $113,000 and sell on a pullback. Ensure the 50-day moving average is below the current price and the Awesome Oscillator is above zero.

Scenario 2: Buy Bitcoin from the lower boundary at $106,700, provided there's no reaction to a downward breakout, targeting $109,000 and $113,000.

Selling Scenarios

Scenario 1: Sell Bitcoin at $106,700, targeting a drop to $102,400. Exit at $102,400 and buy on a pullback. Ensure the 50-day moving average is above the current price and the Awesome Oscillator is below zero.

Scenario 2: Sell Bitcoin from the upper boundary at $109,000, provided there's no reaction to an upward breakout, targeting $106,700 and $102,400.

Exchange Rates 20.01.2025 analysis

Ethereum Trading Scenarios

Buying Scenarios

Scenario 1: Buy Ethereum at $3,391 with a target of $3,527. Exit purchases at $3,527 and sell on a pullback. Ensure the 50-day moving average is below the current price and the Awesome Oscillator is above zero.

Scenario 2: Buy Ethereum from the lower boundary at $3,322, provided there's no reaction to a downward breakout, targeting $3,391 and $3,527.

Selling Scenarios

Scenario 1: Sell Ethereum at $3,322, targeting a drop to $3,185. Exit at $3,185 and buy on a pullback. Ensure the 50-day moving average is above the current price and the Awesome Oscillator is below zero.

Scenario 2: Sell Ethereum from the upper boundary at $3,391, provided there's no reaction to an upward breakout, targeting $3,322 and $3,185.

*El análisis de mercado publicado aquí tiene la finalidad de incrementar su conocimiento, más no darle instrucciones para realizar una operación.

Jakub Novak,
Analytical expert of InstaSpot
© 2007-2025
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