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21.01.202511:03 Forex Analysis & Reviews: Recommendations for crypto market on January 21

Relevancia 02:00 UTC--5

Bitcoin and Ethereum both saw declines following Donald Trump's inauguration. Before the new US president's address, Bitcoin had reached an all-time high near $110,000, but Ethereum was far less fortunate.

Exchange Rates 21.01.2025 analysis

The fact that Trump did not mention the cryptocurrency market in his inaugural speech disappointed traders and investors who were hoping for positive signals to fuel further growth. Many had anticipated that the new administration's economic policies would support and legitimize crypto assets. However, the lack of acknowledgment of Bitcoin or other digital currencies raised doubts about their role in the economic agenda.

This led to a sharp decline in trading interest on exchanges, which in turn caused a drop in the cryptocurrency market's capitalization. Traders began selling off assets, triggering price declines. Bitcoin, which had maintained strong positions for an extended period, soon faced volatility, with its price falling sharply.

Despite the negative sentiment, analysts maintained that cryptocurrencies still have growth potential. Consolidating above $100,000 could serve as a strong signal for the continuation of the bull market. However, if Bitcoin falls below this level, support at $98,000 and $95,000 is likely to be tested within the week.

The trajectory of new legislation concerning digital assets will be crucial, as there are currently no immediate drivers for a major market rally. Discussions about potential Federal Reserve interest rate hikes could exert extra pressure on Bitcoin and Ethereum buyers.

Intraday trading strategy: medium- and short-term scenarios

For medium-term strategies, I will stick to actions based on significant dips in Bitcoin and Ethereum, betting on a further bull market. The bullish outlook remains intact.

For short-term trading, here are the strategies and conditions.

Exchange Rates 21.01.2025 analysis

Bitcoin

Buy scenario

Scenario 1. Buy Bitcoin today after the price reaches the entry point at $103,100, targeting growth to $107,500. Exit buy positions and sell immediately on the rebound near $107,500. Before buying on a breakout, ensure that the 50-day moving average is below the current price and that the Awesome Oscillator is in positive territory.

Scenario 2. Buy Bitcoin from the lower border at $100,800 if there is no market reaction to a downward breakout, with targets at $103,100 and $107,500.

Sell scenario

Scenario 1. Sell Bitcoin today at the entry point near $100,800, targeting a drop to $97,700. Exit sell positions and buy immediately on the dip near $97,700. Before selling on a breakout, ensure that the 50-day moving average is above the current price and that the Awesome Oscillator is in negative territory.

Scenario 2. Sell Bitcoin from the upper border at $103,100 if there is no market reaction to an upward breakout, with targets at $100,800 and $97,700.

Ethereum

Exchange Rates 21.01.2025 analysis

Buy scenario

Scenario 1. Buy Ethereum today once the coin reached the entry point at $3,270, betting on its growth to $3,374. Close buy positions and sell immediately on the rebound near $3,374. Before buying on a breakout, ensure that the 50-day moving average is below the current price and the Awesome Oscillator is in positive territory.

Scenario 2. Long positions on Ethereum can be opened from the lower border at $3,198 if there is no market reaction to a downward breakout, with targets at $3,270 and $3,374.

Sell scenario

Scenario 1. Sell Ethereum today at the entry point near $3,198, targeting a drop to $3,119. Close sell positions and buy immediately on the dip near $3,119. Before selling on a breakout, ensure that the 50-day moving average is above the current price and the Awesome Oscillator is in negative territory.

Scenario 2. Sell Ethereum from the upper border at $3,270 if there is no market reaction to an upward breakout, with targets at $3,198 and $3,119.

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

Miroslaw Bawulski,
Analytical expert of InstaSpot
© 2007-2025
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