Bitcoin’s technical correction appears to be nearing its end, with some traders predicting that the market could soon experience a significant bullish move.

After the holiday break, market sentiment has improved, bolstered by growing anticipation surrounding Donald Trump’s upcoming presidential inauguration. This renewed optimism is fueling a positive outlook for Bitcoin and the broader cryptocurrency market. Bitcoin has surged by 10% over the past week, reclaiming the $102,000 level by late Monday and recovering most of the losses it faced in early December. The cryptocurrency had fallen from a peak near $109,000 on December 17 to just under $92,000 by December 30, sparking concerns of a deeper correction.

The recent surge in Bitcoin comes as U.S.-listed Bitcoin exchange-traded funds (ETFs) experienced significant inflows, with nearly $1 billion in investments on Monday, according to data from SoSoValue. This marked the largest daily inflow since November 21. Fidelity’s FBTC ETF led the charge with $370 million in inflows, followed by BlackRock’s IBIT with $209 million, and Ark Invest’s ARKB with $71 million. A total of nine of the 12 ETFs tracked by SoSoValue saw inflows, a strong indication of growing investor confidence in Bitcoin.

Trump’s anticipated cryptocurrency policies and broader economic plans are helping to rekindle positive sentiment in the market, pushing Bitcoin prices higher and signaling the possibility of a broader rally in altcoins.

“We’re seeing increased demand for Bitcoin after a less-than-optimistic outlook from the Federal Reserve in late December delayed hopes of a Santa Claus rally,” said Jeff Mei, COO of BTSE, in a Telegram message to CoinDesk. “Now that traders are returning from the holidays, we’re seeing renewed bullish activity in Bitcoin, other cryptocurrencies, and equities as we approach Trump’s inauguration,” Mei added.

Some traders are eyeing the $109,000 level as a short-term target before confirming a full-blown bullish trend, which could pave the way for even higher prices.

“The technical picture suggests that the correction is nearly over, and the market is set to resume its upward momentum from the 61.8% Fibonacci retracement level of the rally that started in November,” said Alex Kuptsikevich, Chief Market Analyst at FxPro, in an email. “We would expect confirmation of this bullish scenario if Bitcoin can break through the previous high of around $109,000. If this happens, we anticipate that Bitcoin’s growth will accelerate past the $100,000 mark.”

Fibonacci retracement levels are widely used by traders to identify potential levels of support and resistance, where price movements may stall or reverse. Some believe these levels can have predictive value, as they tend to act as self-fulfilling prophecies, causing market reactions when price approaches these points.

Looking ahead, market volatility is expected to remain low until the U.S. Nonfarm Payrolls (NFP) report is released on Friday, which is anticipated to kick off the new trading year as more market participants return to their desks, according to Augustine Fan, Head of Insights at SOFA.

Strong NFP data could bolster the U.S. dollar and potentially lead to higher interest rates, which might weigh on risk assets like Bitcoin and stocks.

“However, the most significant volatility event this month is likely to be the Federal Open Market Committee (FOMC) meeting at the end of January, where economic data may point to a ‘soft landing’ for the economy,” Fan added.

Bitcoin is currently trading just above $101,600 in the Asian morning session on Tuesday, up 2% in the past 24 hours. Meanwhile, the CoinDesk 20, an index tracking the largest cryptocurrencies by market capitalization, has risen by 0.53%.