Bitcoin Stabilizes Around $105,500 Amid Market Caution
Bitcoin has rebounded to around $105,500 after a brief dip below $100,500 due to tensions between US President Donald Trump and Elon Musk. Analysts warn against celebrating the recovery prematurely.
Current Market Dynamics
- Bitcoin broke its two-week downtrend and is approaching resistance at $106,600.
- A daily close above this level could strengthen bullish sentiment, though some rejection is expected.
- The Fear & Greed Index is at 55, indicating balanced market sentiment.
Institutional Investments
- Trump Media announced a $2.5 billion Bitcoin treasury initiative.
- GameStop acquired 4,710 BTC as part of its investment strategy.
- Strategy and Metaplanet are expanding their Bitcoin holdings, with Strategy planning a $1 billion stock offering for additional BTC purchases.
Technical Analysis
- On-Balance Volume (OBV) remains stable, indicating no increase in selling pressure.
- The Balance of Power (BoP) is negative, suggesting bearish influence persists.
- Analyst Crypto King notes a volatility squeeze near $107,800, with potential for a breakout if resistance is cleared.
The current price action suggests an imminent breakout, contingent on holding above the resistance trendline of $106,600–$107,800.