TRUMP Token Fuels Crypto Gains as Gensler’s Exit Sparks Bitcoin Rally

Bitcoin price is currently retesting important support levels.
Trump’s inauguration could fuel a massive rally for Bitcoin and altcoins
SEC Chair Gary Gensler’s exit could also help strengthen the bullish play.

Bitcoin (BTC) surged by over 3% in the past 24 hours, reaching a new all-time high (ATH) of approximately $109,114. As Bitcoin pushes towards new highs, the cryptocurrency market is gearing up for some important events, particularly with the Trump inauguration just hours away.

The launch of the Trump Meme Coin ($TRUMP) and SEC Chairman Gary Gensler’s upcoming departure have heightened speculation for a more favorable regulatory environment.

The recently launched Trump meme coin went through some wild fluctuations in price, surging up to 200% at one point, followed by a pullback of 20-30%. The upcoming inauguration is expected to further influence the meme coin’s performance, creating more volatility in the short term.

Bitcoin’s Resistance and Support Levels

Bitcoin is preparing for its next big move in the ongoing bull market, similar to what was seen around the same time last year. According to analyst Josh of Crypto World, December and early January were expected to be relatively sideways, with major movement expected in the second half of January.

Key levels include:

Resistance: Between $108,000 and $109,000, aligned with the previous ATH.
Support: Between $102,000 and $103,000, successfully retested recently and acting as a solid floor.

With bullish momentum building, Bitcoin is set to challenge $130,000 in the near term. Alongside BTC, Ethereum and Solana have also recorded impressive gains, reflecting an overall positive market sentiment.

Short Squeeze Potential: Liquidation Insights

Analysts highlight significant liquidity above $106,000-$107,000, dominated by short positions. Breaking this range could trigger a short squeeze, where traders are forced to buy back, driving prices higher.

On the downside, liquidity clusters near $102,000 and $100,000 suggest moderate support. However, the market remains heavily skewed toward upward movement, with bullish signals continuing to dominate.

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