Next Monday, January 20, Donald Trump will return to the White House. According to many, this is positive for the crypto market, but there are also speculations about a new crypto crash on the day itself. This is due to a large number of short-term holders who may sell out of panic if BTC falls too far.
On the other hand, the inauguration of Trump is a positive factor for the crypto market. As president, Trump may make important changes to the regulatory environment in the US, but he may also have plans for the Bitcoin reserve. This could create direct and indirect buying pressure, which would take Bitcoin to a new level.
New crypto crash risk
Based on a short-term cost basis, the $88k level (light blue) is important to protect. At the beginning of the afternoon, the price of Bitcoin remains relatively stable at $93,900. If it falls below $88k, it is possible that short-term holders will sell out of panic.
Such a situation can lead to a domino effect, in which the price continues to fall as more people sell out of panic. Naturally, the price will eventually be absorbed by increasing the buying pressure.
On the other hand, a massive crypto rally is possible if the price of Bitcoin remains above $88k after Trump's inauguration on January 20. It's still surprising how quickly interest in crypto will grow since then, but it will be enough to lift Bitcoin to a new all-time high above $108,300.
Another situation is that investors and traders invest heavily in the period up to January 20, causing famous cryptos to rise before the 20th. If this happens, watch out for a possible selloff, which could trigger a crypto crash on January 20 or in the following days.
Will Bitcoin Go Down to $88k in a Crypto Crash?
At the moment it is very unlikely that the price of Bitcoin will fall below $88k in the period up to January 20th. Since it rose above $90k in November 2024, the famous cryptocurrency has not fallen below this level once. The strong support around $90k makes a drop below $88k very difficult in the short term.
Meanwhile, Bitcoin has strong resistance around $97,300, formed by the 30-day moving average (yellow). Another strong resistance can be seen around $102k. This struggle led to a huge drop last Monday.
The Relative Strength Index (RSI) of 45 also makes a sharp decline unlikely. The RSI indicates that momentum is neutral with a slight bearish tinge, meaning that BTC is not considered overvalued at the moment. Unless bearish market sentiment changes, crypto is likely to rise.
Combine this with the possibility that the market will react very positively to Trump's inauguration and the coming weeks could be very profitable for investors. Cryptocurrency is risky, but it's risky in a way that crypto won't be in the coming weeks.
Trump will probably ensure a massive rally without a crash and we won't see today's levels for a while.
Which altcoins will rise in the next crypto rally?
Bitcoin and major altcoins could get a lot of attention and increase significantly in the coming weeks. However, if we look at smaller altcoins, they could rise even faster if they are caught by investors.
Below we look at 3 small cryptos with the potential to explode in the first quarter of 2025. Small altcoins are obviously more risky than Bitcoin and well-known cryptos, but they can rise much faster if everything is fine.
Wall Street Invitational ($WEPE)
Wall Street Invitational ($WEPE) It is one of the most popular crypto presales right now and has already raised $46.5 million since its launch in December. The advantage of $WEPE is that this meme coin can be more valuable. Additionally, $WPE has a facility for token holders.
$WEPE gives you access to a great community of traders at different levels, as well as elite trading insights that everyone in the community can use. These trading insights can help investors make even more money during the bull.
This season's hottest trend? Wet bags. 🐸 ⚔️ pic.twitter.com/TB9WmFnrjw
– Wall Street Pepe (@WEPEToken) January 11, 2025
You can buy $ WEPE today for $ 0.0003646 each, but this price will increase in the coming days. Another benefit is that you can immediately deposit your points for a current APY of 27%. The popularity of the presale is a good sign that the meme coin may explode after launch.
Solaxy ($SOLX)
Solana has grown significantly since 2023 and may be even bigger than ever in 2025. Solaxy ($SOLX) plans to take Solana to a new level, by launching the first ever Solana Layer-2 blockchain. Solaxy's presale has raised more than $9.8 million to date.
$SOLX can be used within the new blockchain, for example to trade coins on the network and possibly earn extra money with DeFi (Decentralized Finance). The advantage of Solaxy is that you can enjoy Solana's speeds and low costs, without the risk of disruptions and failed transactions.
$SOLX is still for sale today for $0.001598 per token, but will continue to rise in price tomorrow. Solaxy is currently offering attractive bonus rewards with an APY of 354%, so you can get extra tokens after the pre-sale ends.
Best Wallet Brand ($BEST)
After raising $7 million in pre-sales, Best Wallet is soon ready to go native Best Wallet Brand ($BEST) to launch on exchanges. This utility token provides benefits to users of the crypto wallet and therefore has the potential to be valuable.
As a Best Wallet user, you can keep $BEST for various benefits. This includes discounts on in-app activities, benefits from several Best Wallet partners, early access to pre-sales and new launches, but also higher pledge rewards.
Increase your Staking Rewards with $ BEST! 💎
Keeping $ BEST meaning better retention opportunities. Access higher APY rates through the Best Wallet stake collection and make your crypto work harder for you.
Start now. 📲 https://t.co/he5kzra7TY pic.twitter.com/5PKC2eWXzT
– Best Wallet (@BestWalletHQ) January 10, 2025
$BEST is still low priced at 2 cents per token, but after the presale $BEST could be much more expensive. By investing today you will benefit from this fixed price. In addition, early withdrawal is possible for an APY of 274%.
