Bitcoin (BTC) is struggling to overcome the resistance at around $105,000 as traders remain cautious at higher levels. Despite buyer exhaustion setting in overall market sentiment around the flagship cryptocurrency remains bullish.
However, several on-chain metrics are indicating waning momentum as BTC attempts to cross its January all-time high of $109,000. Despite its decline in the ongoing session, BTC is up over 1% in the past 24 hours.
Brazilian Cashback Company Meluiz Purchases 274 BTC
Meluiz, a cashback company in Brazil, announced the purchase of 274 Bitcoin, becoming the first public company in Brazil and Latin America to establish a Bitcoin reserve strategy. Meluiz CEO Israel Salmen explained that the company joined the Bitcoin treasury bandwagon after shareholders approved the move.
“Historic day! Our shareholders have approved, by a wide majority, the transformation of Méliuz into the first Bitcoin Treasury Company listed in Brazil. Today, we took another step forward: Acquired 274.52 BTC for US$ 28.4M. Average price of US$ 103,604, achieving a BTC Yield of 600%. We now hodl 320.2 BTC at an average price of US$ 101,703.80.”
The latest addition takes the company’s total Bitcoin holdings to 320.2 BTC, acquired at an average purchase price of $101,703. Shareholder approval means the firm can push on with further Bitcoin acquisition plans. However, Salmen did not specify whether the company is planning more Bitcoin purchases. Meluiz announced plans to implement a Bitcoin reserve strategy in March and assign 10% of its cash flow to purchase the asset. The company made its first Bitcoin purchase by investing $4 million in BTC to improve its cash flow regime and protect itself from inflation risks.
DDC Enterprise Announces Plans For Strategic Bitcoin Reserve
E-commerce company DDC Enterprise has announced plans to adopt a strategic Bitcoin reserve as part of its 2025 initiatives. The firm aims to acquire at least 5000 BTC within the next 36 months. The company’s founder, Chairwoman, and CEO, Norma Chu, claimed it has become one of the first companies in its sector to embrace Bitcoin. She stated in her shareholder letter,
“We are embarking on a pioneering initiative to position DDC at the forefront of digital asset innovation with laser-focused execution on Bitcoin accumulation.”
The company made an initial purchase of 100 Bitcoin, with Chu stating it had a short-term target and a long-term target for Bitcoin accumulation. The firm plans to acquire 500 BTC for the first six months and hopes to have 5000 BTC on its balance sheet over the next 36 months. DDC Enterprise, or DayDayCook, is a food company from Hong Kong. The company expanded its operations to China and was listed on the New York Stock Exchange in 2023. It offers convenient, ready-to-cook, and ready-to-heat Asian food products. The company reported a significant increase in its revenue by 33% on a year-over-year basis, reaching $37.4 million.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) has lost steam in recent sessions as it struggles to build momentum and cross $105,000. Traders have adopted a cautious approach as markets wait for a catalyst to dictate price action. The flagship cryptocurrency has maintained its position above $100,000 despite buyer exhaustion and selling pressure, indicating that overall sentiment around the asset is still bullish. While BTC registered a substantial rally last week, some analysts believe on-chain metrics are pointing to waning momentum and that it could be heading towards a double top.
“Bitcoin has continued to trade within a range between the $101,700 support and $104,800 resistance levels, maintaining its position above the critical $100K mark for the seventh consecutive day. BTC ETFs recorded outflows totaling $295 million.”
Despite BTC’s inability to cross $105,000 and buyer exhaustion setting in, it has held firm above $100,000 thanks to optimism over easing trade tensions between the US and China and a trade deal between the US and the UK. Consumer price index numbers were also softer than expected, easing inflationary pressure from trade tariffs. US producer prices also unexpectedly declined in April, driven by the sharpest drop in service costs since April. Lower inflation and reduced interest rates typically weaken the US Dollar, making assets like Bitcoin more attractive.
BTC started the previous week positively, registering a marginal increase and settling at $94,770. Price action remained positive on Tuesday as BTC rose over 2% to cross $96,000 and settle at $96,845. A marginal increase on Wednesday allowed BTC to claim $97,000. Bullish sentiment intensified on Thursday as markets rallied. As a result, the price surged over 6% to cross $100,000 and settle at $103,093. The rally lost momentum on Friday as BTC registered a marginal decline. However, it was back in positive territory on Saturday, rising 1.72% to cross $104,000 and settle at $104,617. Despite positive price action on Saturday, the price was back in the red on Sunday, dropping almost 1% to $103,802.
Source: TradingView
BTC started the week with a bout of volatility as buyers and sellers struggled to establish control. Sellers ultimately gained the upper hand as BTC registered a drop of just over 1% and settled at $102,728, but not before dropping to a low of $100,694. The price recovered on Tuesday, rising 1.36% to $104,123, but was back in the red on Wednesday, dropping 0.53% to $103,568. BTC plunged to an intraday low of $101,432 on Thursday as selling pressure intensified. However, the price rebounded from this session to register a marginal increase and settle at $103,820. The current session sees BTC marginally down as buyers and sellers struggle to establish control. Sellers will look to retain control and drive BTC towards $100,000. On the other hand, buyers will look to build momentum and push the price towards $105,000.
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.
