The Trump Effect: Why Bitcoin May Need To Return To $76,000

Based on his campaign promises, US President Donald Trump secured a substantial following in the digital asset space who yearned for a crypto-friendly

Bitcoin (BTC) has stalled within a narrow range over the past two weeks, now trading around $100,000. As the leading cryptocurrency consolidates, a market analyst has shared his theory on how BTC can reestablish its bullish momentum.

However, this theory includes an initial significant price dip. Here’s why Bitcoin may need to return to $76,000 before continuing its rally.

Trump Effect May Have Caused Bitcoin's Past Market Structure

Due to his campaign promises, US President Donald Trump secured a large following in the digital asset space who yearned for a crypto-friendly administration.

As a result of these expectations, Trump’s eventual victory as US President spurred Bitcoin to rally to $108,000 which was followed by a sell-off into the mid-$90,000s.

According to cryptododo7, a market analyst at X username, these price movements were orchestrated by market makers.

As Trump assumed office on January 20, cryptododo7 believes that market makers ensured that BTC returned to $108,000.

The analyst claims that these market makers used new market entrants who bought Bitcoin at high prices to serve as exit liquidity.

In both instances, this market sell-off caused Bitcoin to lose momentum as it slid to lower price ranges.

Now that BTC is consolidating in a range-bound market, cryptododo7 believes that the premier cryptocurrency needs to return to $76,000 in order to begin forming a new rally.

This prediction is based on technical factors such as the double top formation and the short-term Wyckoff Distribution Scheme, both of which indicate BTC is due for a major decline.

However, cryptododo7’s selection of $76,000 as a potential target stems from several reasons including the fact that this price level serves as a strong support and liquidity mop-up zone having been a region of strong buying interest.

Moreover, a pullback to $76,000 would finally allow the Bitcoin market to absorb the excess demands of new market entrants who previously bought at high prices.

In addition, this price correction will present institutional investors to actively accumulate BTC ahead of the next rally.

Cryptododo7 predicts that the next bull rally will definitely occur if Bitcoin retests to $76,000 and finds sufficient support at this price level.

BTC Price Analysis: Key Resistance and Support Levels to Watch

At press time, BTC trades at $99,659 after a 2.74% decline in the past day. In the past week, BTC’s price has slid by 3.6%.

suggesting a slight downturn in traders’ interest. To make any significant uptrend, Bitcoin faces a major resistance at $106,0000, moving past which may push the asset to new price regions.

On the other hand, the first major support level is located at $94,343. Breaking below this level could put BTC at risk of sliding towards the lower-$90,000s.

With a market cap of $1.99 trillion, BTC remains the most valuable cryptocurrency boasting a market dominance of 58.6%.