Bitcoin's 10% Surge Sparks Optimism, Analysts Predict $130K Price Target

Bitcoin has experienced a remarkable surge, climbing nearly 10% to reach an all-time high of $109,356 on January 20, as volatility gripped the market at the start of the European trading session. This significant jump in Bitcoin's price came just one day after it traded below $100,000, marking a dramatic shift in its trajectory. As of writing, Bitcoin is trading at approximately $108,000, representing a 3.3% increase over the past 24 hours, according to data from Cointelegraph Markets Pro and TradingView.
A Wild Weekend and the Trump Effect
The sudden rally coincided with major developments in the crypto industry, especially surrounding U.S. President-elect Donald Trump's inauguration and the launch of his memecoin, Official TRUMP (TRUMP), which quickly gained traction. Within just two days, the coin’s market cap surged to as high as $20 billion, propelling it into the top 15 cryptocurrencies by market capitalization.
However, this caused volatility in the market, particularly as Trump's wife, Melania Trump, also launched her own memecoin, creating further instability. These developments contributed to massive price fluctuations across the crypto market, including a drop in Bitcoin’s price. Yet, despite these disruptions, Bitcoin has managed to bounce back and is once again flirting with new all-time highs after what analysts described as a turbulent week.
Impressive Comeback and Market Liquidity
Bitcoin’s resurgence has also been marked by significant liquidity shifts, with a staggering $4.74 billion increase in open interest as the price rebounded. Data from CoinGlass reveals that Bitcoin’s comeback reversed a prior drop of over $3 billion in open interest, sparking a wave of liquidations across the market. In just under one hour, over $52 million worth of short Bitcoin positions were liquidated, further highlighting the volatility and excitement surrounding Bitcoin's recent price action.
The Path to $130K
While the crypto market’s wild ride continues, some analysts are optimistic that Bitcoin’s rally could be far from over. Trader and analyst Jelle has set a price target of “mid $130Ks,” pointing to a breakout from a descending triangle pattern that has been in play since mid-November. In a post on X (formerly Twitter) on January 20, Jelle explained that Bitcoin’s recent move above the resistance line of the descending triangle could signal the beginning of a bullish rally that may push the cryptocurrency toward new highs.
“Bitcoin broke out from the descending triangle, retested it, and bounced straight to new all-time highs,” Jelle stated, emphasizing that the next target for Bitcoin is likely to fall in the mid $130,000 range.
For fellow analyst Daan Crypto Trades, the sharp rise in Bitcoin’s price, following the swift closure of a “small CME gap,” has been seen as a positive sign for the weeks ahead, suggesting a continued bullish outlook for the cryptocurrency.
Conclusion
Bitcoin's impressive price surge has captivated the crypto market, as traders and analysts speculate on the potential for even higher gains. While the launch of memecoins by Donald and Melania Trump introduced significant volatility, Bitcoin has managed to regain its footing and reach new all-time highs. With analysts predicting a potential rise to the mid-$130K range, the coming weeks could prove to be an exciting period for Bitcoin and the broader cryptocurrency market.
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