Bitcoin Price Analysis: BTC’s Chances Of A Drop To $100,000 Increase
Bitcoin (BTC) has faced considerable selling pressure after reaching its new all-time high on May 22. Buyers are showing signs of fatigue after multiple failed attempts to push the price towards $115,000, leading to a substantial increase in bearish sentiment around the flagship cryptocurrency.
BTC is down nearly 2% over the past 24 hours, trading around $103,527.
Meta Shareholders Vote Against Bitcoin Treasury Assessment Proposal
Meta shareholders have overwhelmingly voted against a proposal to assess adding Bitcoin to the company’s treasury. The results, shared by PhoenixNews, showed that 8.9 million shares were abstentions, and nearly 205 million shares were broker non-votes. The proposal, submitted by investor Ethan Peck, asked Meta to evaluate if converting a portion of its cash and bond holdings into Bitcoin would be better to preserve shareholder value. Meta had $72 billion in cash, cash reserves, and marketable securities as of September 30, 2024. The proposal claims these are being eroded by inflation and low returns and presents Bitcoin as a more reliable long-term store of value.
The proposal also highlighted growing institutional interest in Bitcoin adoption, presenting Strategy’s aggressive Bitcoin accumulation strategy as an example. It also mentioned BlackRock’s endorsement of a 2% Bitcoin allocation and speculation about potential US federal and state-level Bitcoin reserves. However, Meta’s board of directors dismissed the proposal, calling it unnecessary. The board added that Meta has a robust treasury management process that prioritizes capital preservation and liquidity to support operations. The board of directors released a statement, stating,
“While we are not opining on the merits of cryptocurrency investments compared to other assets, we believe the requested assessment is unnecessary given our existing processes to manage our corporate treasury.”
Bitcoin Supply Shock Could Amplify Prices: Sygnum
Katalin Tischhauser, head of research at digital asset banking group Sygnum, believes a Bitcoin supply shock could have significant price implications compared to previous cycles.
“Large demand will have a strong multiplier effect, meaning every $1 of demand leads to, say, $20-30 additional market capitalization. We have already seen this multiplier effect after the launch of the Bitcoin spot ETFs or around the US elections.”
Tischhauser highlighted the limited supply of the flagship cryptocurrency relative to institutional capital on the demand side as a reason for a possible spike in the Bitcoin price over the next few months.
“This liquid supply has been falling steadily over the past 1.5 years, not least because of the proliferation of Bitcoin acquisition vehicles such as Strategy, Twenty-One Capital, and others.”
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) could dip to $100,000 over the next few days if bearish sentiment persists. However, on-chain data suggests prolonged trading below this level could be limited. The flagship cryptocurrency encountered substantial selling pressure this week as it struggled to build momentum after surging to a new all-time high on May 22. A CryptoQuant analysis showed the Net Realized Profit/Loss (NRPL) chart, which tracks profits and losses from Bitcoin transactions, indicated moderate profit-taking at current levels. Another metric supporting a quick rebound if BTC slips below $100,000 is the short-term realized price, which sits at $96,000. If the price falls below $100,000, the $96,000 could act as a floor, attracting buyers and limiting downside.
According to crypto trader Altcoin Sherpa, current market conditions are ideal for a price recovery in the coming days.
“still not rushing into any positions personally. Lost some $ yesterday by overstaying my welcome and roundtripping w. that Trump tweet, is what it is. Overall, I still think it's a scalping environment. I do think $BTC bounces relatively soon, though.”
Let’s look at BTC’s price action over the past two weeks. BTC started the previous week in the red, dropping to an intraday low of $102,135 before rebounding to reclaim $105,000 and settle at $105,572. The price recovered on Tuesday, rising 1.21% to $106,854. Bullish sentiment intensified on Wednesday as BTC rose 2.57% to cross $109,000 and settle at $109,603. BTC raced to a new all-time high on Thursday, reaching $111,970 before registering a marginal decline and settling at $111,589. However, market sentiment turned bearish on Friday, and BTC fell nearly 4%, slipping below $110,000 and settling at $107,356. BTC recovered over the weekend, rising 0.46% on Saturday and 1.16% on Sunday to settle at $109,103.
Source: TradingView
BTC started the current week with a marginal increase but was back in the red on Tuesday, dropping 0.46% to $108,954. Sellers retained control on Wednesday as the price fell 1.03% to $107,835. Bearish sentiment intensified on Thursday as BTC plunged below the 20-day SMA and settled at $105,662 after a drop of over 2%. BTC continued to drop on Friday, registering a fall of 1.51% and settling at $104,067. The current session sees BTC marginally down, with analysts predicting a drop to $100,000 if current sentiment persists.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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