Bitcoin rebounds above $105K after dipping to $100K, forming a V-shaped recovery as traders eye resistance at $106K and $107K.
Market volatility spikes amid Musk’s stablecoin ambitions and rising political pressure as lawmakers weigh tighter crypto regulations.
Technical support at $100,400 triggers a strong rally while consolidation phases help digest gains ahead of major resistance levels.
According to Altcoin Daily on X, Bitcoin has reclaimed critical levels above $105,000 after a volatile session marked by a dramatic V-shaped recovery. The asset initially plunged from highs around $106,000 to intraday lows near $100,400. However, buying pressure surged at the $100,400 support, sparking a strong rally. Currently, Bitcoin trades near $105,701 with price action testing key resistance zones.
Sharp Reversal Ignites Rally
The chart shows downward momentum early in the session. Red candlesticks dominated as sellers pushed the price lower. Large-bodied candles indicated intense volatility with strong bearish sentiment. However, Bitcoin found firm support at $100,400. Buyers stepped in aggressively, forming green candlesticks that signaled a bullish reversal.
Hence, the market transitioned from panic selling to accumulation. Price steadily advanced, slicing through multiple resistance zones. Besides, consolidation periods allowed the market to absorb gains. These pauses were marked by mixed candles, reflecting healthy pullbacks during the uptrend. Additionally, volume surged during key inflection points. This activity confirms institutional and retail interest, particularly near psychological levels like $100,000 and $106,000.
Musk’s Stablecoin Threat Stirs Political Concerns
Meanwhile, tensions surrounding Elon Musk and crypto regulation intensified. Musk's company, X, aims to launch a payment platform with Visa called “X money.” Lawmakers fear this move could enable the creation of a dollar-pegged stablecoin. That development could blur boundaries between tech firms and financial institutions.
Consequently, Congress may include language in upcoming crypto legislation to limit such efforts. The proposed rules could block tech companies from leveraging stablecoins in financial products. This directly challenges Musk’s ambitions and stokes division in Washington. Moreover, X is already registered with the Treasury's FinCEN and holds licenses in several states as a money transmitter.
These political dynamics add uncertainty to an already volatile market. Traders now weigh both technical resistance near $107,000 and the impact of looming regulation. The $106,000 level, marked by a dotted yellow line, remains the key battleground.
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