After consolidating for almost eight days straight, Bitcoin jumped to $107,000 on Sunday, May 18. But as soon as it touched $107,108, it crashed 4,000 points down to $103,000.
The reasons for this crash may not be linked to any major fundamental factor. After such a rally, Bitcoin needed a pullback, or we can say it had to come to a discount territory.
Market moves smartly. It does not let weak hands who are inexperienced in the market stay in the rally. So it broke out above resistance to trigger short positions and lure bulls into longs. That is exactly where smart money starts booking profit with high efficiency. The area above the previous resistance zone becomes an extreme liquidity zone for big bears. Hence, it crashed to $103,000 with strong volume.
Could BTC/USD fall further? Where might it find support before it rises again?
Based on my personal chart technique, BTC may drop to $97,000 again before continuing its journey upwards. That is supposedly the best discount zone for big bulls.
Please note that this is just speculation. There is no guarantee Bitcoin will follow the same price action.
Also Read – What it will take for XRP to become the next Bitcoin?
Recent Developments in Fundamental Factors of Bitcoin
Big firms like BlackRock and MicroStrategy are buying Bitcoin as a shield against rising prices. ETF inflows are now much higher than the amount of new Bitcoin mined.
The April 2024 halving cut miner rewards to 3.125 BTC per block. By May 2025, the Bitcoin network’s computing power has grown a lot, showing more miners are joining. But with lower rewards, miners are using more efficient machines like Bitmain’s S21+ and finding cheaper electricity in places such as Oman and the UAE.
Large banks are planning to offer Bitcoin storage services if rules change. The EU’s new MiCA law in 2025 and clearer US regulations are making it safer for more investors to join. A new SEC chair, Paul Atkins, is also showing a friendlier stance toward digital assets.
Bitcoin (BTC) has seen significant price action in recent months, reaching an all-time high (ATH) of $109,114.88 on January 20, 2025. This milestone followed a strong rally, with BTC surpassing $100,000 for the first time on December 5, 2024, amid optimism from the U.S. election of a crypto-friendly administration.
This article is not financial advice. It reflects the personal opinion of the author. Bitcoin is highly volatile and carries significant risks. Always consult a financial advisor before making any investment decisions.