The cryptocurrency market entered the new year on a bullish note. This is the first time in about five weeks that the market has been in a bearish trend in recent weeks.
Bitcoin, the top cryptocurrency by market capitalization, has risen more than 4% in the past 24 hours, regaining the $106,000 level. As the market becomes more bullish, the stock price could rise further.
BTC Recovers $106,000 in Trump Tariff Dividends
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Bitcoin has increased in value by over 4% in the past 24 hours and is currently trading at over $106,400 per coin.
This strong performance comes after President Trump announced on Truth Social that direct tariff dividends of “at least” $2,000 would be paid to most Americans.
He added that the United States currently generates trillions of dollars in tariffs, and said the fund would help both reduce the country’s $37 trillion national debt and fund dividends.
The news sent Bitcoin and other major cryptocurrencies higher as investors expected the dividends to be used to buy risk-based assets, similar to the stimulus checks Americans received during the coronavirus pandemic.
Along with Bitcoin’s rise, altcoins also posted impressive gains over the weekend. Ether is trading above $3,600, adding 6% to its value, while XRP leads the pack with an 11% surge.
Binance’s BNB remains worth over $1,000 despite a measly 1% increase, while Solana, Cardano, and Dogecoin are all up more than 6% in the past 24 hours.
Thanks to the continued rally, the crypto market cap has reached $3.57 trillion and could regain $4 trillion if the bullish recovery continues.
Due to technical improvement, BTC targets $110,000
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Despite Bitcoin’s impressive performance over the weekend, the BTC/USD daily chart remains bearish and efficient. The market has changed momentum in recent days and could move higher in the short term.
The Relative Strength Index (RSI) on the daily chart is 46, close to the neutral 50, indicating that recent bearish momentum is fading.
The Moving Average Convergence Divergence (MACD) line is also close to the neutral zone, suggesting a growing bullish bias.
If the recovery continues, Bitcoin could rally toward the next daily resistance level at $110,413 in the coming hours or days.
However, this rally depends on whether Bitcoin closes Monday’s candlestick above $104,581. If the bull market continues, BTC will likely regain the 112k resistance level.
Conversely, if Bitcoin fails to close above the $104,000 matrix, it could see a pullback towards the $102,000 support level.
Barring significant selling pressure on the market, the recent support level of the 50% Fibonacci retracement at $100,353 is likely to hold once again.
Overall, market trends are turning bullish and Bitcoin could rise in the short term.
