January is likely to see new wave of Bitcoin price growth

Bitcoin quotes moved to correction after setting an all-time high above $108 000 a week ago. The price has already retreated by 13% from the record level and risks falling below the 50-day moving average for the first time since mid-October. However, such a development of events will surely attract to the cryptocurrency market a lot of traders who want to open long positions at favorable prices. In January, these transactions may bring them good profits.

Sean McNulty, director of Arbelos Markets, connects the current drop in Bitcoin quotes with the outflow of liquidity from financial markets during the holidays. In his opinion, the main cryptocurrency may still fall in price a little, but will hold above the support of $90 thousand. David Lawant, head of research at FalconX, advises investors to buy out the current Bitcoin drawdown in anticipation of a new wave of growth in the first quarter of 2025.

The cryptocurrency community has high expectations with Donald Trump's inauguration as President of the United States. The inauguration is scheduled for January 20, and already on this day some decrees may be signed. Among Trump's campaign promises were the creation of a strategic Bitcoin reserve, ensuring the industry's access to banking services and the formation of a cryptocurrency council. According to Reuters' sources, at least one of these reforms will be approved by the president immediately after the inauguration.

An initiative group from the Bitcoin Policy Institute already prepared a bill to create a strategic reserve of the main cryptocurrency. According to the document, the U.S. Treasury Department will be obliged to allocate $21 billion over the next year for the purchase of bitcoins to the national reserve. Trump and his advisers' opinion on this bill is still unknown, but in case of its acceptance, the cryptocurrency market will surely experience another rally.

The Stochastic indicator on the daily Bitcoin chart is close to the oversold zone and may turn upwards at any moment. In such a scenario, the nearest growth target will be the level of 99 500.

Consider the following trading strategy:

Buy BTCUSD at the current price. Take profit – 99500. Stop loss – 90500.