Bitcoin ‘power of 3’ setup targets $103K by President-elect Trump’s inauguration day
2025.01.15 14:54
Bitcoin (BTC) price is up 11.50% from its Jan. 13 lows at $88,900, forming a bullish engulfing pattern on the daily chart. The crypto asset also established a position above equal highs (EQs) between $95,350 and $96,150, which previously acted as a resistance range.
Bitcoin 4-hour chart. Source: Cointelegraph/TradingView
After the recent swing low, favorable CPI data on Jan. 15 has pushed BTC to the brink of another $100,000 re-test. However, one particular setup implied that BTC could reclaim a higher position than $103,000 before President-elect Trump’s official appointment on Jan. 20.
Bitcoin “power of 3” setup hints breakout
Bitcoin’s trend deviation/liquidity sweep near $89,000 on Monday occurred after a period of sideways consolidation between Jan. 9 and Jan. 13. However, BTC’s flash decline under $90,000 was a short-term move, and the crypto asset pushed higher.
Bitcoin 4-hour chart. Source: Cointelegraph/TradingView
This three-part setup is commonly known as the power of 3 or AMD. It is divided into phases of accumulation, manipulation, and distribution. This concept revolves around liquidity zones, offering a deeper outlook on how institutions trade the market against retail traders at certain levels.
Accumulation refers to a consolidation phase (between Jan. 10 and Jan. 13) where smart money or experienced traders build their positions and price moves sideways.
Manipulation indicates a brief window (e.g., the recent liquidity sweep on Jan. 13) when market makers try to influence price to deceive retail traders into panic selling or trap short traders who open fresh positions due to new range lows.
Finally, the distribution phase is when the price starts moving toward the opposite side of the manipulation range, as liquidity zones become available at the other end.
A bullish Power of 3 setup is evident for Bitcoin, where the price is breaking out in the distribution phase. With a swing high currently established at $102,750, where external liquidity is present, BTC could potentially rally another 6.5% this week ahead of President-elect Donald Trump’s inauguration.
AlphaBTC, a Bitcoin maximalist, underlined a similar price range, where the next liquidity “hot zone” has been identified. The analyst said,
“103K+ is the closest and would create an HH on the mid-timeframes.”
However, the BTC trader added that failure to reclaim $103,000 opens the door to a move down to $80,000, where further downside liquidity is present.
Related: Bitcoin breakout ‘likely no later’ than Jan FOMC meeting: 10x Research
Expected CPI print pushes BTC higher
After the US Producer Price Index (PPI) came below expectations on Jan. 14, risk assets like equities and crypto witnessed a relief rally as PPI data indicated a possible rebound in inflation.
Core CPI data came in 3.5% below the estimated 3.8%. Similarly, CPI data on Jan. 15 rose to 2.9%, which aligned with expectations. Thus, wider markets expected BTC to retain its uptrend and breach $100,000 within the next few days.
However, Momin Saqib, a crypto commentator, believed that Bitcoin would reach new all-time highs in a few weeks, irrespective of US macroeconomic data. Saqib said,
“If CPI is in favor, I expect us visit $101-$102K range”
Related: Bitcoin inflows under Trump spark new $249K BTC price target for 2025
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
