Bitcoin (BTC) buyers are showing signs of exhaustion after failing to cross the resistance zone between $108,000 and $108,350. The flagship cryptocurrency risks dropping below $105,000 due to a developing bearish divergence, declining volumes, and repeated failures to push past resistance levels.
BTC is up nearly 2% during the ongoing session, trading around $107,455.
Senate Passes Big Beautiful Bill With No Exemption For Bitcoin
The United States Senate passed President Trump’s Big Beautiful Bill by a razor-thin margin after hours of heated negotiations. However, the bill brought little cheer to the crypto industry as it failed to include key crypto-related tax amendments that would have benefited the industry. Pro-crypto senators raced to include an amendment containing numerous tax benefits for crypto stakers and miners, retail digital asset users, and businesses holding crypto stockpiles.
The over 1,000-page bill did not mention “digital assets,” “Bitcoin,” “Ethereum,” “crypto,” “web3,” or “blockchain” anywhere, despite efforts by pro-crypto senators to include tax breaks for the industry. Cynthia Lummis, vocal pro-crypto advocate, argued for changing the tax code for crypto mining and staking. Lummis argued that miners and stakers were being taxed twice, once when they received block rewards and again when selling their assets.
“For years, miners and stakers have been taxed TWICE. Once when they receive block rewards, and again when they sell it. It’s time to stop this unfair tax treatment and ensure America is the world’s Bitcoin and Crypto Superpower.”
Crypto Steady As Bitcoin (BTC) Drops To $105,000
The crypto market remained steady, registering only a marginal decline despite Bitcoin (BTC) dropping to a low of $105,328 on Tuesday. The crypto Fear & Greed Index registered a “Greed” score of 63 out of 100 on Wednesday, one point lower than Tuesday. Analysts speculate Bitcoin could retest its all-time high of $111,970, with optimism high on Monday when the price soared to an intraday high of $108,794 before losing momentum. The analysts also noted that Bitcoin is heading into its third quarter, typically a weak phase for the flagship cryptocurrency. Crypto trader Dann Crypto stated,
“From the historical data, this quarter is generally the slowest out of all, for both $BTC and $ETH.”
Bitcoin has averaged a gain of 5.47% during the third quarter each year since 2013. If the trend holds, it places BTC around $110,000 on Sept 30, just shy of its all-time high. According to Dann, weaker performances during the third quarter are likely due to slower summer months when volume and liquidity are generally lower.
More Institutions Add Bitcoin (BTC) To Holdings
Deutsche Bank is venturing deeper into the crypto space. The bank has partnered with Bitpanda and Taurus and plans to launch a full crypto custody service by 2026. The partnership will also focus on tokenized payments and a stablecoin.
“NOW: Deutsche Bank to launch its #crypto custody service in 2026, marking a major leap into digital assets by one of Europe’s biggest banks.”
Meanwhile, the Smarter Web Company, a UK-based web design and marketing firm, is doubling down on its Bitcoin strategy. The firm announced the acquisition of 230.05 BTC, valued at $24.7 million. The company made the purchase at an average price of $107,126 per coin. The latest acquisition takes the company’s total Bitcoin stash to 773.58 BTC, disclosed in a Tuesday filing by the company. The firm has invested over $82 million in Bitcoin and possesses one of the biggest Bitcoin treasuries of a listed firm in the UK.
Meanwhile, Belgravia Hartford Capital Inc. also completed its latest Bitcoin purchase as part of its long-term Bitcoin Treasury Reserve strategy. The firm acquired 9.35 BTC for $1 million, at an average price of $106,918 per coin. The latest purchase increases tits total holdings to 15.746 BTC.
Genius Group Limited, a leading AI-powered, Bitcoin-first education group, also announced a Bitcoin purchase, increasing its holdings by 20% to 120 BTC. Genius Group is accelerating its Bitcoin acquisition strategy with more frequent purchases. The most recent purchase has doubled the size of its Bitcoin treasury since May 22, when a Preliminary Injunction preventing it from buying Bitcoin was stayed by the US Court of Appeals. Genius Group has reiterated its target of increasing its treasury to 1,000 BTC in the next six months.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) has made a strong recovery during the ongoing session, bouncing from Tuesday’s low of $105,328. The flagship cryptocurrency ended the weekend positively, rising almost 1% to cross $108,000 and settle at $108,360. However, it lost momentum on Monday, dropping 1.09% to $107,167. Sellers retained control on Tuesday as BTC slipped below $106,000 before rebounding to current levels.
Price action remains sluggish, and analysts have pointed out that Bitcoin realized profits for long-term holders remain significantly lower. According to on-chain analytics platform CryptoQuant, BTC must reach $140,000 to give long-term holders profits comparable to 2024. The flagship cryptocurrency has registered a jump in profit-taking as it struggles to maintain its positive price action. According to CryptoQuant, long-term holders have contributed to a substantial chunk of the ongoing selling pressure. The platform compared current realized profits with earlier bull market peaks, finding out that long-term holders are not “as deep in the black” as before. According to CryptoQuant contributor Darkfrost, the average realized profit based on the Market Value to Realized Value (MVRV) ratio currently sits at 220%.
According to Darkfrost, the price at which long-term holders' unrealized profits will match 2024 levels acts as a market magnet.
“Although these profits may seem substantial, we’re still far from the levels observed during the tops of this cycle. To return to those profit levels, BTC would need to reach $140,000. A price level that many are calling for.”
The flagship cryptocurrency showed signs of exhaustion after crossing $108,000 on Monday and was rejected from the resistance zone. The resistance sits between $108,000 and $108,300, aligning with the upper level of the current trading range. BTC attempted to push higher, but remained pinned below this level. Analysts suggest the rally is losing momentum, with a bearish divergence forming. If sellers retain control, it could trigger a drop to $100,000.
BTC registered a sharp decline over the previous weekend, dropping 1.17% on Saturday and settling at $102,180. Bearish sentiment intensified on Sunday as the price plunged below $100,000, falling to a low of $98,385 before recovering to reclaim $100,000 and settling at $100,985. Bullish sentiment returned on Monday as BTC rallied, rising over 4% to reclaim $105,000 and settle at $105,443. Buyers retained control on Tuesday as the price rose 0.66%, crossing the moving averages and $106,000 to settle at $106,137. BTC continued pushing higher on Wednesday, rising 1.19% to cross $107,000 and settle at $107,397. Despite the positive sentiment, BTC lost momentum on Thursday, registering a marginal decline to slip below $107,000 and settle at $106,980.
Source: TradingView
Despite the selling pressure, BTC recovered, registering marginal increases on Friday and Saturday to reclaim $107,000 and settle at $107,339. Bullish sentiment intensified on Sunday as the price rose almost 1% to cross $108,000 and settle at $108,350. BTC was back in the red on Monday as the week started on a bearish note, dropping 1.09% to $107,167. Sellers retained control on Tuesday as the price fell 1.33%, slipping below $106,000 and settling at $105,742. BTC has recovered during the current session and is up over 2%, trading around $108,151.
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.
