Bitcoin (BTC) extended its losses during the ongoing session, falling to an intraday low of $101,586 before rising to its current level. The flagship cryptocurrency is down over 1% during the past 24 hours, trading around $102,665.
BTC has faced repeated rejections at around $105,000 as buyer exhaustion and selling pressure weigh the price down.
Ukraine Eyes Strategic Bitcoin Reserve
According to reports, Ukraine could review a legislative proposal to create a state Bitcoin reserve with backing from Binance. Ukrainian MP Yaroslav Zhelezniak, also the First Deputy Chairman of the Finance Committee, confirmed plans to introduce a draft bill in the Ukrainian parliament soon. Zhelezniak stated,
“We will soon submit a draft law from the industry allowing the creation of crypto reserves.”
While the bill is still being refined, Zhelezniak has clarified the bill will focus exclusively on Bitcoin, ruling out a broader crypto reserve. If passed, Ukraine will become the first European country to establish a state-run strategic Bitcoin reserve. The proposal has attracted attention from Binance, with its regional head for Central and Eastern Europe, Kirill Khomyakov, expressing support for the initiative. However, Khomiyakov stated that creating such a reserve would require significant changes in legislation, adding that while the process may not be quick, it will bring long-term benefits.
“Another positive aspect is that this initiative will likely lead to greater clarity in the regulation of crypto assets in Ukraine, as the government will need to more clearly articulate its position on this issue.”
Binance has collaborated with several countries and jurisdictions, including partnerships with Kyrgyzstan and Pakistan to develop crypto regulations. The exchange is also advising multiple governments on establishing Bitcoin reserves.
Is Bitcoin Reaching A Market Top?
A decline in Bitcoin’s long-term holder supply could indicate early signs of a potential market top, according to data from Glassnode. The firm noted in a post on X that LTH supply, which includes wallets holding Bitcoin for a minimum of 155 days, peaked at 14.29 million BTC, rising from 13.66 million BTC in mid-March. On the other hand, LTH spending, which tracks BTC moving out of wallets, has risen to 0.43, a level that historically tends to front-run local tops.
“#Bitcoin's LTH supply rose from 13.66M $BTC in mid-March to 14.29M $BTC but recently ticked down again for the second time in May. LTH spending has also picked up to 0.43. These inflections can escalate quickly, often front-running local market tops - worth watching closely.”
Analysts are divided about Bitcoin’s trajectory, with some believing the flagship cryptocurrency could be headed for a reversal. WhaleWire analyst Jacob King stated that he believes Bitcoin is forming a double top, an event that has signaled the end of every significant bull cycle. The analyst also claimed the rally is artificially maintained by Tether inflows and insider manipulation. He also warned that Bitcoin was dangerously overvalued, and the market could be about to crash.
“Bitcoin’s recent surge is completing a double top — a pattern that has occurred at 100% of its major market cycle peaks. It’s a clear signal: the bear market is beginning. While retail sheep convince themselves that hovering above $100K is due to mythical institutional demand or covert government buying, anyone thinking critically can see the truth. The price is being artificially propped up by Tether and its insiders, giving whales the exit liquidity they need. With incoming stablecoin regulations, the entire house of cards is about to collapse. Insiders are already moving into gold and real assets.”
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) remained under selling pressure this week as the flagship cryptocurrency extended its losses during the ongoing session. The price dropped to an intraday low of $101,586 before registering a marginal recovery. BTC’s rally lost momentum this week after facing multiple rejections at $105,000. However, despite the selling pressure, BTC has not ceded ground to the bears and held firm above $100,000 despite falling to a low of $100,694 on Monday. Bitcoin’s performance mirrored the broader stock market as Dow Jones, Nasdaq 100, and S&P Indices futures dropped 0.50%. Additionally, the absence of a catalyst driving the retreat suggests traders are locking in their profits after BTC’s stunning rally.
The flagship cryptocurrency maintained its strong fundamentals even as demand increased and supply remained under pressure. Data from SoSoValue revealed that spot Bitcoin ETFs registered over $319 million in inflows on Wednesday, raising the total inflows to over $41 billion. BTC’s mining difficulty and hash rate have also risen, while exchange supply has dropped to its lowest level in six years. The combination of growing demand, declining supply, and soaring M2 money supply suggests that BTC’s price could continue rising.
BTC ended the previous weekend in the red, dropping nearly 2% to $94,390. The price recovered on Monday, registering a marginal increase and settling at $94,773. Buyers retained control on Tuesday as the price rose 2.19% to cross $96,000 and settle at $96,845. A marginal increase on Wednesday saw BTC claim $97,000 and settle at $97,013. Bullish sentiment intensified on Thursday after the US-UK trade deal. As a result, BTC rallied over 6%, surging past the $100,000 mark and settling at $103,096. However, it lost momentum on Friday, registering a marginal decline, slipping below $103,000 and settling at $102,851. Bullish sentiment returned on Saturday as BTC rose nearly 2% to $104,617.
Source: TradingView
BTC was back in bearish territory on Sunday, dropping almost 1% to $103,804. It faced volatility on Monday as buyers and sellers struggled to establish control. Sellers ultimately gained the upper hand as BTC dropped 1.04% and settled at $102,729. BTC recovered on Tuesday despite selling pressure, rising 1.35% to reclaim $104,000 and settle at $104,120. Price action returned to bearish on Wednesday as BTC registered a marginal decline and settled at $103,569. Selling pressure has intensified during the ongoing session, with BTC down nearly 2%, slipping below $102,000 and trading around $101,686. If sellers retain control, the price could drop to $100,000.
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.
