Bitcoin Price Analysis: BTC Trades In The Red As Price Action Remains Subdued

Bitcoin (BTC) is struggling to reclaim $110,000 after a quiet start to the week. The flagship cryptocurrency registered a marginal increase on Memorial Day but fell back in the red on Tuesday after briefly crossing $110,000. BTC is trading around $109,050, with the price marginally down over the past 24 hours. 

Analysts believe BTC risks a pullback to $100,000 if it fails to reclaim $110,000 and falls out of its bullish channel. However, they also state that the broader outlook around the asset remains positive. 

US May Buy More Bitcoin 

White House AI and Crypto Czar David Sacks suggested the US may be open to buying more Bitcoin to expand its reserves if it can be done in a budget-neutral way. Sacks discussed the Trump administration’s aggressive push to reshape US crypto policy, including years of perceived hostility towards digital assets. Speaking with Tyler and Cameron Winklevoss at the Bitcoin 2025 conference in Las Vegas, Sacks highlighted the Trump administration’s pro-Bitcoin actions, including the establishment of a Strategic Digital Asset Reserve, and indicated the reserve could be expanded, stating, 

“If it can be done in a budget-neutral way—specifically if either the Commerce Department or the Treasury Department can figure out how to fund it without adding to the debt, then they are allowed to create those programs.”

President Trump signed an executive order that stated the reserve would be funded by Bitcoin held by the US Department of the Treasury, forfeited during civil and criminal proceedings. However, Sacks believes the executive order allows the US government to purchase more Bitcoin. 

“So if we can convince Howard Lutnick, who's Commerce Secretary, or Scott Besson, who's the Treasury Secretary, to buy some, and they can figure out how to fund it—without a new tax or adding to the debt, maybe by finding the money from some other program that's not using it—then we could potentially acquire more Bitcoin.”

Bitcoin Rally Could Liquidate $7B In Short Positions 

Bitcoin (BTC) briefly crossed $110,000 on Tuesday after the US equities market opened strongly, and the Trump Media and Technology Group announced plans to raise $2.5 billion for a Bitcoin treasury. BTC’s momentum aligns with favorable macroeconomic conditions, with the National Financial Conditions Index (NFCI) shifting to ultra-loose territory after a tightening phase in February 2025. The NFCI tracks the stress in the financial system by aggregating measures like credit spreads, leverage, and funding conditions. When it moves into looser territory, it indicates easier access to capital and reduced market stress. For assets like Bitcoin, such movements typically align with price rallies as capital flows into risk and speculative assets. 

According to the Econometrics newsletter, liquidity has returned to the market, creating a favorable macroeconomic environment for assets like Bitcoin. 

“That’s the kind of macro backdrop where Bitcoin thrives. Bitcoin’s rally to new highs didn’t come out of nowhere. It’s tracking the same pattern we saw since 2023: easing conditions → capital rotation → risk-on.”

Bitcoin Long-Term Holders Firm Despite Monumental Rally 

Unlike previous market cycles, long-term Bitcoin holders are in no hurry to sell. On-chain data has revealed a lack of selling despite substantial profit potential. This indicates a conviction among long-term investors that the price will continue to push higher. Real Vision analyst Jamie Coutts stated that the LTH-SOPR (Spent Output Profit Ratio) indicator is one of the most obvious indicators of this resilience. 

“While MVRV and NUPL measure the potential for profit-taking, LTH-SOPR captures when that potential is realized—when long-term holders actually move coins to lock in gains or cut losses. At previous tops, the signal has been clear: LTH-SOPR hit 17 in 2017, 8 in 2021, and 4.3 in Q1 2024. Today, it sits at 2.1. Bitcoin has rallied over 47% from the lows and reached new all-time highs—yet long-term holder selling remains muted.”

Bitcoin (BTC) Price Analysis 

Bitcoin's (BTC) price action has been subdued this week as it struggles to reclaim $110,000. The flagship cryptocurrency registered a marginal increase on the memorable day holiday but declined on Tuesday after briefly crossing $110,000. Analysts believe BTC faces the risk of a pullback and a drop to $100,000 if it fails to reclaim $110,000. Additionally, Bitfinex analysts have warned that more liquidations could follow if BTC drops below $108,000. Total crypto liquidations hit $211 million on Tuesday, of which $131 million were long positions, compared to a little over $79 million in short positions. Bitunix analysts have interpreted this imbalance as evidence of a long-side wipeout during BTC’s recent drop to $108,000 and have cautioned investors against entering overly aggressive long positions while BTC trades near this level. 

“Short-term attention should be paid to the effect of support at $108,500–$109,000, and it is not recommended to chase higher. Analysts advise observing whether the $110,800–$112,000 pressure band is effectively broken before considering further positions.”

The analysts stated that a drop below this level could trigger more liquidations and lead to a price breakdown. 

“A drop below $108,000 could trigger a new round of liquidations. Traders are advised to exercise strict risk control as the market could weaken again if capital inflows do not resume.”

BTC registered a marginal decline on Saturday (May 17), settling at $103,235. The price rebounded on Sunday, rising over 3% to cross $106,000 and settle at $106,489. BTC plunged to an intraday low of $102,135 on Monday as selling pressure intensified. However, it rebounded from this level to reclaim $105,000 and settle at $105,572, ultimately registering a drop of nearly 1%. BTC recovered on Tuesday, rising 1.21% to $106,854. Buyers retained control on Wednesday as the price registered an increase of 2.57% to cross $109,000 and settle at $109,603. BTC raced to a new all-time high on Thursday, rising to $111,970 before registering a marginal decline and settling at $111,582.

Source: TradingView

However, price action turned bearish on Friday thanks to renewed trade war concerns. As a result, BTC dropped nearly 4% to $107,356. The price recovered over the weekend, rising 0.46% on Saturday and 1.15% on Sunday to cross $109,000 and settle at $109,095. BTC registered a marginal increase on Monday but was back in the red on Sunday, dropping 0.46% to $108,951 after briefly crossing $110,000. The current session sees BTC down over 1%, trading around $107,843. A decline from current levels could see the price test the $100,000 support level.

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.