Market Overview
Bitcoin has seen a significant downturn over the last 24 hours, with its price dropping from $109,239 to a low of $106,670, reflecting a decrease of 2.35%. This decline was largely instigated by Donald Trump’s unexpected announcement of a 50% tariff on European Union imports, which led to widespread market sell-offs and a swift drop in Bitcoin’s value from previous highs near $111.3K.
Despite this volatility, institutional interest in Bitcoin appears to remain strong. Data from May 22 indicates inflows of $934 million into US spot Bitcoin ETFs, followed by $608 million on May 21.
Technical Analysis
Bitcoin’s recent price adjustment has created a solid resistance level around $108,300, while support is situated between $106,700 and $107,000. The price saw a quick surge from $107,373 to $107,671 over a short period before experiencing a rapid reversal.
Moving forward, technical indicators suggest that Bitcoin is currently situated within a compression zone, navigating between two critical fair value gaps that could dictate the market’s direction in the near future.
Key Insights
- If Bulls regain control over the $109K to $110K range, we may see a rally towards resistance points beyond $112K.
- Conversely, a drop below the $107,000 support could lead to testing liquidity around $106K.
Recent Price Movement
- The most significant price fluctuations occurred during the 13:35 minute mark where Bitcoin surged nearly $150, establishing temporary resistance around $107,630 but then declining to $107,393 by 2:00 PM.
For additional insights into Bitcoin’s price trends and expert opinions, refer to the following external references:
- “Bitcoin Price Prediction for May 25: Will Bulls Defend $108K or Is a Deeper Drop Ahead?” - Coin Edition, published May 24, 2025.
- “Why is Bitcoin Price Dropping Now? Will BTC Price Go Down to $100K?” - CoinPedia, published May 24, 2025.
- “Bitcoin Price Analysis: BTC Displays Signs of Weakness Following New All-Time High” - CryptoPotato, published May 25, 2025.
