Bitcoin Hits Record High Ahead of Trump Inauguration — Sell-The-News Next?

Bitcoin (BTC), the world’s leading cryptocurrency by market cap, surged to a fresh record high of over $109,000 during Asian trading hours on Jan. 20, just a few hours ahead of Donald Trump’s inauguration as President of the United States.

Trump’s Odds of Establishing Bitcoin Reserve in the US Increases — Polymarket Data

Trump, who campaigned to create a crypto-friendly administration, has pledged to position the United States as the “crypto capital of the planet.” His administration also suggested establishing a “strategic national bitcoin reserve” to bolster the nation’s digital asset policy.

According to Polymarket, a crypto-betting platform, Trump’s odds of setting up a Bitcoin strategic reserve for the US increased from 44% to over 50% in a day, coinciding with Bitcoin’s price boom in the last 24 hours.

Adding to the intrigue, Trump recently launched his cryptocurrency. However, the token briefly tumbled over the weekend after Melania Trump unveiled her multi-billion-dollar meme coin project.

Initially, the dual launches sparked market volatility, with Bitcoin crossing over $100,000 over the weekend.

Trump has reportedly prepared 100 executive orders to implement immediately following his inauguration, signaling plans for swift action on key priorities. Among these is an order to elevate cryptocurrency to a policy priority, aiming to give key players in the crypto market a key voice within his administration.

Does Bitcoin Face Sell-the-News Risks?

Historically, major news events, such as a political shift or new policy announcements, have triggered “sell-the-news” scenarios in financial markets. In Bitcoin’s case, such a pullback could align with its current technical structure—a bull flag pattern—without derailing its broader uptrend.

A bull flag is a classic continuation pattern characterized by a strong upward move (the flagpole) followed by a consolidation phase (the flag) marked by parallel trendlines sloping slightly downward or sideways.

In Bitcoin’s weekly chart, the cryptocurrency’s recent rally from $65,000 to above $100,000 represents the flagpole, while the subsequent consolidation near its record highs forms the flag. These patterns often indicate that the price will eventually break out in the direction of the prior trend.

Bitcoin faces short-term correction risks while trading near the top of the flag, fueled by the inauguration event. Such a correction would likely see Bitcoin testing support near the flag’s lower trendline, approximately $90,000.

Despite these near-term risks, the bull flag’s overall structure remains bullish. A breakout above the flag’s upper trendline could propel Bitcoin toward the next Fibonacci extension levels. If bullish momentum sustains through February, the 2.618 Fibonacci level near $145,000 appears to be a realistic target.

On the flip side, a breakdown below the $90,000 support could invalidate the bullish setup and prompt a deeper retracement.