Bitcoin Price Analysis: BTC Struggling To Build Momentum, Are Bulls Still in Control?

Bitcoin (BTC) has recovered after registering a notable decline on Monday, when it fell to a low of $117,410. The flagship cryptocurrency is up almost 1% during the ongoing session, trading around $118,831. 

BTC has traded between $116,000 and $120,000 for two weeks, as it struggles to build momentum and push above $120,000. 

US Looking To Claim $2.4 million In Seized Bitcoin 

The US has filed a civil complaint seeking the forfeiture of $2.4 million in Bitcoin (BTC). The assets were seized by the Dallas FBI. The complaint, filed in the Northern District of Texas, seeks the forfeiture of 20.2 BTC seized from an associate of the Chaos group, which has been tied to several ransomware attacks. The seizure took place on April 15 after authorities alleged the assets were related to ransomware attacks. If the forfeiture is successful, the BTC could be added to the US Bitcoin reserve, which President Trump mandated through an executive order signed on March 6. 

The US government holds 198,012 BTC, according to estimates by Nansen, Arkham Intelligence, and BitcoinTreasuries. However, a recent freedom of information request called that figure into question. According to a journalist, the freedom of information request revealed that the United States Marshals Service (USMS) only held 28,988 BTC. However, the journalist added that the figure does not include assets held by other agencies like the FBI or the DEA. 

Billionaire Ray Dalio Urges Bitcoin Allocation 

Veteran asset manager Ray Dalio has urged investors to allocate at least 15% of their portfolio to gold and Bitcoin amid growing risks in the bond and equity markets. The Bridgewater Associates founder stated in a podcast that macroeconomic risks associated with rising government debt in the US and elsewhere have not been priced in, which could lead to a substantial decline. Dalio stated on the podcast, 

“The U.S. government is spending 40% more than it takes in, and it can’t really cut its spending. It’s accumulated a debt that’s six times the amount of money it takes in [...] and in interest payments that is $1 trillion per year, which is half [its] budget deficit.”

He explained that the US government can pay its debts only by issuing more debt and by the Federal Reserve printing more money. This could lead to a situation where another round of quantitative easing or the government taking control of the Fed could lead to a major crash. Dalio added that because such risks are not priced into markets, investors must allocate a portion of their portfolios to gold or Bitcoin. 

Digital Commodities Announces Bitcoin Purchase 

Digital Commodities has announced the purchase of an additional 1.86 Bitcoin (BTC) using cash on hand. The total purchase price was $300,000 at an average purchase price of $160,544 BTC. The firm completed the transaction through Coinsquares' regulated OTC trading desk, and aligns with its strategic initiative to acquire digital assets as an alternative to traditional currency. The latest acquisition takes Digital Commodities’ total Bitcoin holdings to 10.56 BTC. 

The company also announced Nick St. Louis as its dedicated Bitcoin strategist. Nick will guide the company in developing and executing its corporate Bitcoin strategy. This includes evaluating and deploying all options to leverage capital markets while advancing Bitcoin as a solution for currency depreciation. 

SEC Delays Decision On Truth Social ETF 

The United States Securities and Exchange Commission (SEC) has extended the review period for the Truth Social Bitcoin ETF until September. The delay pushes the initial deadline by 45 days, giving the regulator more time to evaluate the application under its commodity-based trust share framework. The SEC has up to 240 days from the date of the filing to approve or reject an ETF proposal. The Truth Social Bitcoin ETF was filed on June 3, making the extension a part of the standard review process. 

The SEC stated that it needed more time to consider the proposal and any issues raised during the review period. The regulator has not made any formal objections so far. However, the ETF’s ties to Trump Media have drawn criticism about a conflict of interest and political interference. 

Bitcoin (BTC) Price Analysis 

Bitcoin (BTC) has registered a notable decline this week as buyers struggle to build momentum. The flagship cryptocurrency ended Sunday in positive territory, rising 1.31% to cross $119,393. However, it lost momentum on Monday, starting the week with a 1.12% decline and settling at $118,064. BTC’s drop has coincided with a broader decline in the crypto market, which is down over 1% in the past 24 hours. 

The flagship cryptocurrency has faced consistent selling pressure around $120,000, a level where it has faced repeated rejections. However, the repeated tests of a crucial resistance level tend to weaken it over time. Analysts have highlighted that BTC remains above $115,000, indicating that the bulls are not ceding ground to the bears. This means BTC’s bullish structure is intact, improving its chances of reaching a new all-time high. 

BTC started the previous weekend in the red, dropping over 1% to $117,877. Sellers retained control over the weekend as the price registered a marginal decline on Saturday and fell 0.48% on Sunday to settle at $117,240. BTC reached an intraday high of $119,603 on Monday. However, it lost momentum after reaching this level and settled at $117,397, ultimately registering a marginal increase. Bullish sentiment intensified on Tuesday as BTC rallied, rising over 2% to cross $119,000 and settle at $119,980. Despite the positive sentiment, the price lost momentum on Wednesday, dropping almost 1% to $118,794.

Source: TradingView

Sellers retained control on Thursday as BTC fell 0.35% to $118,381. Selling pressure intensified on Friday as the price plunged to an intraday low of $114,770. However, it rebounded from this level to reclaim $117,000 and settle at $117,565, ultimately registering a 0.69% drop. BTC recovered over the weekend, rising 0.24% on Saturday and 1.31% on Sunday to reclaim $119,000 and settle at $119,398. Selling pressure returned on Monday as the price fell 1.12% to $118,064. The current session sees BTC down 0.38%, trading around $117,630.

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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