Bitcoin Price Prediction: Will Bitcoin’s Rally to $120K Inspire a TRUMP Meme Coin Recovery?

Bitcoin and the TRUMP Meme Coin are navigating contrasting market dynamics in 2025. While Bitcoin remains strong above the $100,000 mark, supported by increasing open interest and governmental endorsements, TRUMP Coin battles bearish momentum. Both tokens have captured market attention, with traders closely watching their next moves.

Bitcoin Targets $120K Amid Support from U.S. Policies

Bitcoin’s price remains above $105,000, bolstered by increasing adoption and a recent executive order from former President Donald Trump.

This order focuses on creating a national cryptocurrency reserve, signaling the U.S. government’s growing acceptance of digital assets.

Bitcoin daily price. Source: Brave New Coin Liquid Index

Market analysts are optimistic that this development, combined with Bitcoin’s robust support level at $98,638 (50-day SMA), could propel the cryptocurrency to test higher resistance levels of $110,000, $115,000, and ultimately $120,000.

Bitcoin’s Open Interest has surged to $67.52 billion as of January 24, 2025, indicating increased market activity and potential liquidity.

Analysts note that a rise in Open Interest alongside price stability is a bullish indicator, suggesting strong buying pressure in anticipation of higher prices.

Bitcoin’s Open Interest. Source: Coinglass

Bitcoin’s daily chart reveals stable trading above key support levels. The 50-day Exponential Moving Average (EMA) at $101,080 serves as a robust support point. Additionally, the 20-day EMA is at $104,855, keeping the price within a narrow range of consolidation.

BTC/USD daily chart. Source: Trading View

The Relative Strength Index (RSI), a momentum oscillator, currently stands at 60.10, signaling neutral sentiment. The RSI has moved away from overbought conditions, suggesting a balanced trading environment.

Bitcoin Surges as Large Transactions Double: A Bullish Outlook for 2025

Recent data indicates a notable surge in Bitcoin’s transaction activity, particularly among large-scale transactions. Market data website The Santiment has shared insights on Twitter, noting that the number of Bitcoin transactions exceeding $100,000 has doubled in just one week, escalating from 15,620 to 32,320.

This significant increase, as tracked by IntoTheBlock, underscores a growing interest and confidence among high-net-worth individuals and institutional investors in Bitcoin. This shift is reflective of a broader optimism currently permeating the crypto market, suggesting a robust bullish sentiment as we progress into 2025.

The landscape for Bitcoin has been further bolstered by recent regulatory changes and increasing institutional adoption. 

Notably, the SEC’s recent repeal of SAB 121—a rule that imposed stringent capital requirements on digital assets—has made it easier for banks and financial institutions to engage with cryptocurrencies.

Can TRUMP Coin Rally Alongside Bitcoin’s Potential?

TRUMP Coin, a Solana-based meme token tied to the name of former President Donald Trump, continues to face significant market challenges despite weekly gains. The token has seen a 12% price drop over the past three days, with trading volume declining 30% to $4.17 billion.

TRUMP/USD weekly chart. Source: Trading View 

Data from Dexscreener indicates a stark imbalance in trading activity, with $79 million in sell volume compared to $35 million in buy volume over the last 24 hours. This persistent selling pressure has caused the token to trade within a tight falling wedge pattern, with the RSI indicator sitting at 43.80, reflecting further downside risk.

Meanwhile, Bitcoin has been riding a wave of optimism, recently hitting $109,358 before stabilizing near $104,000. Analysts point to Bitcoin’s growing large-scale transactions, which doubled in the past week, and regulatory developments, such as the SEC’s repeal of restrictive capital requirements, as reasons for its bullish potential.

With the Mayer Multiple suggesting room for Bitcoin to grow to $182,000 before reaching overbought conditions, investor sentiment remains high.

Despite its current struggles, TRUMP Coin retains the potential for recovery if bulls regain control. Resistance levels at $45, $59, and $74 provide key targets for upward momentum.

However, the token’s price remains vulnerable to further declines, potentially testing the $18 support zone.

According to analysis by Rose Premium Signals, the TRUMP token is demonstrating strong bullish action in the current market. Positioned firmly above the critical support zone at $30.70, this resilience suggests a readiness to tackle upward resistance levels.

Source: X

The first anticipated price target is $56.59, with a further potential rise to $71.10 if momentum continues.

What Lies Ahead for Bitcoin and TRUMP Coin?

For Bitcoin, holding above the $98,638 support level is essential for sustaining its bullish momentum. A breach of key resistance levels could pave the way for the highly anticipated $120,000 mark.

Source: X

According to the latest analysis shared by @ali_charts on Twitter, the Mayer Multiple, a well-regarded metric for assessing Bitcoin’s market conditions, suggests that Bitcoin still has significant growth potential.

Historically, this tool has been effective in identifying when Bitcoin is overbought by observing when the value trades above the 2.4 level on the oscillator. Past data indicates that each market peak for Bitcoin has coincided with surpassing this threshold.

Currently, the 2.4 oscillator level is situated near $182,000, which implies that Bitcoin’s price, presently much lower than this marker, could continue to ascend before reaching overbought conditions.