Bitcoin Price Analysis: BTC Reclaims $104,000 Despite Sluggish Momentum
Bitcoin (BTC) reclaimed $104,000 on Saturday as it rebounded from an intraday low of $103,361. The flagship cryptocurrency reached an intraday high of $104,896 before declining to current levels.
BTC has been up almost 1% over the past 24 hours, trading around $104,612, as it looks to build momentum and push above $105,000.
Michael Saylor’s Bitcoin Strategy Is Gaining Steam
Michael Saylor’s Strategy’s Bitcoin accumulation plan is being copied by media firms, multinational conglomerates, and meme stock companies. However, Wall Street remains skeptical and isn’t buying into the hype. This week, Trump Media announced an ambitious plan to raise $2.5 billion to fund Bitcoin purchases. GameStop also made a $500 million allocation towards Bitcoin purchases, while Tether, Softbank, and Strike’s Jack Mallers announced TwentyOne, a Bitcoin-native public company. The company plans to launch with more than 42,000 BTC on its balance sheet.
However, the market doesn’t see any of the firms becoming the next Strategy. Trump Media shares plunged 20% since the announcement, while GameStop is down 17%. Speaking about the market’s reaction to the announcements, Strategy executive chairman Michael Saylor stated,
“Maybe the market wanted them to buy more bitcoin. But these are short-term dynamics. Over the long term, bitcoin on the balance sheet has proven to be extraordinarily popular.”
Saylor called Trump Media’s move aggressive and intelligent, stating,
“Everywhere I go at this conference, someone says, you know, I’m working on a bitcoin treasury company in Hong Kong. I’m doing this thing in Korea. I’ve got this thing I’m working on in Abu Dhabi. We’re going to do this in the Middle East, you know, we’ve got this in the U.K.There’s an explosion of interest right now.”
IMF Flags Concerns About Pakistan’s Bitcoin Plan
The International Monetary Fund (IMF) has raised concerns about Pakistan’s plan to allocate 2000 megawatts of electricity for Bitcoin mining and artificial intelligence (AI) data centers. The plans were announced last week amid ongoing negotiations with the IMF to extend the country’s financial program. However, the IMF has questioned the move and requested urgent clarification from the country’s Finance Ministry regarding the legality of crypto mining and power allocations as the country struggles with chronic energy shortages and fiscal pressures.
According to reports, the IMF was not consulted prior to the announcement, prompting it to question the legal standing of cryptocurrencies in Pakistan. It has also voiced concerns over potential impacts on resource distribution and power tariffs.
“There is a fear of further tough talks from the IMF on this initiative. The economic team is already facing stiff questions, and this move has only added to the complexities of the talks.”
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) continued its decline from recent highs, dipping below $105,000 as sellers gained the upper hand in recent sessions. Analysts predict a deeper pullback to $100,000 will occur before bulls find the momentum to return to the price discovery phase. The flagship cryptocurrency is almost $8,000 below its peak of $111,970. As BTC encountered resistance at multiple levels, on-chain indicators flagged a slowdown in momentum. On-chain analytics platform CryptoQuant noted in a report that some Bitcoin demand metrics were reaching a short-term top, indicating a pause in the current rally. The report stated,
“CryptoQuant’s estimate of Bitcoin’s demand growth in the last 30 days is at 229K, which is near the previous demand growth top of 279K Bitcoin reached in December 2024. Additionally, whale-held Bitcoin balances have increased by 2.8% over the past month, a pace that often precedes a slowdown in whale accumulation.”
Bitcoin (BTC) raced to a new all-time high on Thursday (May 22), racing an intraday high of $111,970 before settling at $111,589. However, it has been downhill since, with the price nearly 4% to $107,356. BTC recovered over the weekend, registering an increase of 0.46% on Saturday and 1.16% on Sunday to settle at $109,103. The price registered a marginal increase on Monday but was back in the red on Tuesday, dropping 0.46% and settling at $108,954. Sellers retained control on Wednesday as BTC fell .03% and settled at $107,834.
Source: TradingView
Bearish sentiment intensified on Thursday as the price fell over 2%, slipping below the 20-day SMA and settling at $105,662. BTC continued to decline on Friday, falling 1.51%, falling below $105,000 and settling at $104,067. Despite the overwhelming selling pressure, the price recovered on Saturday, rising 0.69% to $104,784. The current session sees BTC marginally down. The MACD shows sellers have the upper hand. If the current downtrend continues, BTC could test the $100,000 support level before bouncing back.
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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