Bitcoin Surges to $106,300 Before Facing Resistance Once Again
Bitcoin made a strong move early Tuesday, briefly touching the $106,300 mark before encountering selling pressure that pushed it back below $106,000. This price level has consistently acted as a barrier for Bitcoin throughout 2025, preventing it from surpassing January’s record high.
The ongoing struggle to break through the $106,000 threshold has turned it into a psychological barrier for bullish investors. Despite multiple attempts, Bitcoin has been unable to sustain a rally above this key level.
The most recent push towards $106,000 occurred over the weekend following Moody’s downgrade of the United States’ sovereign rating to Aa1. This event triggered a temporary increase in demand for hard-asset hedges, causing Bitcoin to rise by nearly 2% before losing momentum.
In addition to the Moody’s downgrade, market attention shifted to Capitol Hill where the Senate advanced the GENIUS Act, a stable-coin bill aimed at establishing comprehensive digital asset regulations in the U.S. Bitcoin reacted positively to this news, showing its sensitivity to regulatory developments.
Market sentiment remains upbeat, with crypto spot exchange-traded funds seeing significant inflows of $7.5 billion over the past week. BlackRock’s IBIT vehicle now holds 633,212.00 BTC, representing 3% of the total Bitcoin supply. This institutional support has been a driving force behind Bitcoin’s 42% year-to-date rally.
Analysts like Edul Patel of Mudrex believe that a daily close above $107,500 is crucial for Bitcoin to make a fresh attempt at an all-time high. Patel suggests that the $102,750 level serves as initial support, with a failure to break through leading to a potential drop towards $100,000.
Macro indicators present a mixed picture, with consumer-price inflation easing to 2.3% in March while Treasury yields remain elevated. Real yields above two percent have historically dampened risk-on sentiment, but Bitcoin’s role as a hedge against traditional finance instability has been reinforced by recent events.
Volatility, currently at record lows, could pick up leading into the May 30 options expiry, where open interest is concentrated around the $110,000 and $115,000 strikes. Any hawkish signals from the Federal Open Market Committee or delays in the GENIUS bill could impact Bitcoin’s price action.
Overall, Bitcoin’s resilience in the face of market challenges and institutional adoption signals a growing maturity in the cryptocurrency space. The next 48 hours of macroeconomic news will likely determine whether Bitcoin can break through the $106,000 resistance and establish it as a new support level.