Bitcoin Price Analysis: BTC Reclaims $105,000 As Markets Recover

Bitcoin (BTC) has reclaimed $105,000, making a strong recovery after dropping to an intraday low of $101,201 on Friday. The flagship cryptocurrency is up nearly 2%, trading around the $105,071 mark. 

BTC’s drop to $100,000 wiped out over $1 billion in leveraged bets over the past 24 hours as traders rushed to sell. Analysts believe BTC’s decline has been sustained by long-term holders locking in their profits. 

Bitcoin (BTC) Turns Bearish Amid Political Tensions 

Bitcoin (BTC) dipped sharply on Friday, plunging 3% to hit a low of $100,421 as political tensions between President Donald Trump and SpaceX CEO Elon Musk escalated. However, it has recovered since, regaining its position above $105,000. The price action reflects increased volatility across crypto after an acrimonious escalation of tensions between President Trump and Musk. The tensions triggered a risk-off sentiment heading into the weekend as the global crypto market cap plunged over 4%, and Bitcoin fell to $100,000, with market watchers sweating over a further decline. 

According to data from CryptoQuant analyst Darkfrost, the Binance net taker volume fell from $20 million to -$135 million in under eight hours, indicating a sharp change in investor sentiment. The analyst emphasized that this was the largest intraday net-taker volume reversal observed on the exchange this year. The shift shows how quickly sentiment changes if influential figures or macro-narratives dominate headlines. 

Miner Inflows Could Pressure Price Action 

Bitcoin has recovered after Thursday’s dip, rising back above $105,000 during the ongoing session. While BTC has recovered, the broader crypto market is still digesting the fallout. However, CryptoQuant analysts have pointed out another factor that could decide the near-term outlook. According to on-chain data, Bitcoin miners have dramatically increased the amount of BTC transferred to exchanges. Miner-to-exchange inflows crossed $1 billion per day between May 19 and May 28. These inflows are often seen as a proxy for miners’ preparing to sell their holdings. This could significantly impact BTC’s short-term supply dynamics and introduce volatility to the flagship cryptocurrency’s spot market performance. 

The spike in realized inflows from miners to exchanges can be interpreted as a sign of growing sell-side pressure. Large-scale transfers to exchanges are generally interpreted as miners preparing to offload their assets. Analysts have pointed out that while miner selling isn’t inherently negative, it could impact short-term price stability. On the other hand, when miner inflows spike, it reflects sentiment regarding profitability, operational stress, or anticipated price changes. 

“Paying close attention to these inflows—especially during historical peaks like the current phase—can help with risk management and more informed trading decisions.”

Bitcoin (BTC) Price Analysis 

Bitcoin (BTC) registered a sharp drop on Thursday, falling to an intraday low of $100,421 on Thursday as markets turned bearish. Sentiment turned bearish following an ugly spat between President Trump and SpaceX CEO Elon Musk. However, the decline was short-lived as BTC rebounded on Friday to cross $104,000 and settle at $104,378. The price briefly crossed $105,000 during the ongoing session but has declined and is currently trading around $104,799. 

Despite the decline, analysts believe a pullback was expected and could trigger a move to fresh all-time highs. According to an analysis, BTC follows a similar path after each halving. The analyst pointed out that BTC rose around 280% a year after the 2016 halving and 550% a year after the 2020 halving. During the current cycle, BTC has climbed around 70% since the halving. According to Klarch, price action has picked up after a slow start during previous cycles, indicating there is more room for growth. 

According to the analyst, BTC’s recent all-time high is a milestone that marks the beginning of a move higher. BTC has multiple tops before it hits the cycle’s real peak. 

BTC started the previous week positively but was back in the red on Tuesday, registering a marginal decline. Sellers retained control on Wednesday as the price fell 1.03% to $107,834. Bearish sentiment intensified on Thursday as BTC plunged over 2%, slipping below the 20-day SMA and settling at $105,662. The price declined on Friday, dropping 1.51% to go below $105,000 and settle at $104,067. Despite the overwhelming selling pressure, BTC recovered over the weekend, rising 0.69% on Saturday and nearly 1% on Sunday to reclaim $105,000 and settle at $105,775.

Source: TradingView

BTC plunged to an intraday low of $103,734 on Monday as selling pressure intensified. However, it recovered from this level to register a marginal increase and settle at $105,903. Price action turned bearish on Tuesday as BTC fell 0.44% to $105,435. The price declined on Wednesday, falling nearly 1%, slipping below $105,000 and settling at $104,755. Bearish sentiment intensified on Thursday thanks to the Trump-Musk spat. As a result, BTC fell over 3%, plunging to an intraday low of $100,421 before settling at $101,615. The decline was short-lived as the price recovered on Friday, rising almost 3% and settling at $104,378. BTC briefly crossed $105,000 during the ongoing session before registering a marginal decline and moving to $104,952, an increase of nearly 1%.

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.