The recent uptick in Bitcoin (BTC) has caused altcoins to explode. Ripple’s XRP, for example, has set up a new all-time high after 16% rally on January 16. With such a bullish crypto market outlook, here are top reasons why Bitcoin price could hit $131,000 in the next 26 days.
Reasons Why Bitcoin Price Could Hit $130K Soon
Here are some key reasons that could push Bitcoin price to kickstart a bull rally and hit $130.
Reason 1
President-elect Donald Trump’s inauguration on January 20 is speculated to be one of the main events that could catalyze a crypto market rally. This is because many expect Trump to execute his crypto promises, which include a Strategic Bitcoin Reserve and making the US the center of innovation. Many believe that Trump could also pardon Silk Road’s Ross William Ulbricht, who is imprisoned for life.
Reason 2
From a technical standpoint, Bitcoin’s rally from the January 13 low has pushed it beyond the $90K to 100K range that BTC has been consolidating for the past 65 days. This development has tilted the odds in bulls’ favor and hints at an upcoming rally.
Reason 3
The consolidation between late September 2024 and mid-October 2024 led to a similar breakout.If history repeats, then Bitcoin could consolidate above the range high of $100K for the next 11 days. Following this, an exponential rally could unfold, sending it toward the 161.8% Fibonacci extension level at $131,055.
BTC/USDT 1-day chart
On-chain Data Hints Investors Should Exercise Concerns
Despite the recent breakout of BTC price above the range high of $100K, the daily active addresses (DAA) metric continues to trend lower. Since the all-time high in December 2024, the DAA has produced lower highs. Currently, the metric hovers around 773,000.
Bitcoin Price vs. Daily Active Addresses
Bitcoin Whales Transaction Count Decreases
The recent drop below $90K on January 13 attracted whales buying the dips. But overall, the transactions worth $100K or more have continued to decrease. This downtrend indicates that interest is dropping.
BTC Price vs. Whale Transaction Count
While long-term technicals are bullish and Bitcoin price could hit $130K in 26 days, investors need to be cautious. However, the short-term outlook remains uncertain with on-chain metrics pointing to a cautious outlook.
Key BTC Support Levels If Bulls Fail
Regardless of bullish Bitcoin price predictions, investors need to keep an eye out for a scenario where this outlook fails to manifest.
BTC/USDT 4-hour chart
A failure to stay above $100K could lead to a reentry into the range. In such a case, the key support levels to watch include $96,850, which is the highest volume traded level for the past 65 days. Beyond this, the range low at $92,800 will be key area for a potential reversal. In a worst-case scenario, Bitcoin could revisit $89,095 and $85,800 support floors.
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