Print the page
Increase font size
Bitcoin Defies the Drawdown

Posted January 17, 2025

Greg Guenthner

By Greg Guenthner

Bitcoin Defies the Drawdown

Renewed inflation fears gave speculators the perfect excuse to sell their stocks over the past six weeks.

Of course, everyone’s probably getting way too bearish right now. Santa failed to show, January is off to a back-and-forth start, and sellers have knocked a lot of air out of the frothiest stocks that were screaming higher during the fourth quarter.

As stocks began to recover following favorable inflation data earlier this week, I’m sure there’s one question on your mind: What should I look to buy in this choppy market?

Many of the popular stocks that folks were trading back in November might need more time to set up for fresh trades. But there is one asset that’s ripe for another strong rally…

I’m talking about Bitcoin.

Here are three reasons why Bitcoin is set to rise and quickly break above its December highs.

1. Crypto Stocks Are Already Catching Fire

While Bitcoin is still flirting with $100K, we’re seeing some of the beaten-down crypto miners stretch their legs.

Hut 8 (HUT) logged double-digit gains on Wednesday as Bitcoin extended higher. Meanwhile, Riot Platforms (RIOT) jumped nearly 10% to post fresh January highs. CleanSpark (CLSK) also gained more than 8% to post its fourth straight day of gains.

Granted, these Bitcoin miner charts are far from perfect (I’d say HUT is my favorite one at the moment). But we can’t discount the fact that these stocks are already posting big moves — as if they’re anticipating an impending Bitcoin breakout following nearly two months of sideways action.

Aside from the miners, we’re also seeing strong moves from other crypto-adjacent stocks. Trading app Robinhood Markets (HOOD) is even breaking out to fresh all-time highs this week as it enjoys the one-two punch of positive analyst comments and a finalized SEC settlement.

If speculators are going after the crypto plays in the stock market, it’s only a matter of time before Bitcoin falls in line and continues its march higher.

2. Is It 2021 All Over Again?

Bitcoin enjoyed a huge rally during the pandemic trading boom in Q4 2020. Crypto continued its hot streak into January 2021, just as huge squeezes in Tesla (TSLA) and meme stocks like GameStop (GME) dazzled traders.

January 2025 hasn’t been as kind to speculative stocks thus far. But remember, Bitcoin didn’t need any extra juice from the stock market to continue its romp in 2021. While most of the frothy names ran out of steam by early February, Bitcoin continued to push higher into mid-April.

But that wasn’t the top. Bitcoin traded within a $30K range for the remainder of the year, while speculative growth areas of the market such as the ARK Innovation ETF (ARKK) were cut in half.

Will we see the 2021 scenario unfold again?

I don’t have a crystal ball, so I can’t say for certain. But I wouldn't be surprised if the next few months rhyme.

3. Bitcoin’s Next Measured Move Gives Us a $120,000 Target

Bitcoin has essentially traded in a sideways range since late November as it marched to its first breakout above $100K.

Now that it’s beginning to turn higher again, we can begin plotting price targets in anticipation of an upside breakout.

Here’s how I see it playing out…

If Bitcoin can get back above $105K and start to run, it will likely escape this sideways chop and produce a rally similar in magnitude to what we saw in early November when it jumped from the low $70K range to the mid $90Ks.

That gives us approximately $20K of upside from the breakout zone.

I think that makes $120K a reasonable target looking ahead to the late first quarter — maybe even sooner if Bitcoin runs like it did back in Q4.

For now, it looks like it may be crypto’s time to shine while stocks still try and find their footing this year.

3 Beaten-Down Charts Ready to Bounce

3 Beaten-Down Charts Ready to Bounce

Posted November 07, 2025

By Greg Guenthner

These three areas have gotten absolutely hammered. But they could be setting up for a bounce by next week.
Wisdom of a FinTwit Oracle

Wisdom of a FinTwit Oracle

Posted November 06, 2025

By Enrique Abeyta

Ed Borgato may be one of the most insightful investors that you’ve never heard of.
Give Gold a Rest (and Trade This Miner Instead)

Give Gold a Rest (and Trade This Miner Instead)

Posted November 04, 2025

By Ian Culley

Gold acts as a leading indicator for other commodities. Based on past cycles, expect a rally in metals like lithium soon.
When Seasonality Meets "Situationality"

When Seasonality Meets "Situationality"

Posted November 03, 2025

By Enrique Abeyta

How does the market perform heading into year-end when it’s already running hot? Let’s take a look at the data.
Is the Melt-Up on the Ropes?!

Is the Melt-Up on the Ropes?!

Posted October 31, 2025

By Greg Guenthner

If the choppy market action is making you nervous… Relax. Melt-up season is still a go!
Trade Earnings “Noise” for Quick, Double-Digit Profits

Trade Earnings “Noise” for Quick, Double-Digit Profits

Posted October 30, 2025

By Enrique Abeyta

It’s the best time of the year for traders — earnings season.