What to know:
- Bitcoin underwent a notable correction over the past 24 hours, dropping from $109,239 to a low of $106,670, representing a range of $2,568 (2.35%).
- Donald Trump’s surprise announcement of a 50% tariff on EU imports triggered broad market sell-offs, with Bitcoin quickly falling from local highs near $111.3K.
- Despite the correction, institutional interest remains strong with US spot Bitcoin ETFs witnessing inflows of $934 million on May 22 and $608 million on May 21.
In simpler terms, the dip in Bitcoin’s price has created a significant level of resistance around $108,300 due to high trading volume. Meanwhile, a support level is developing between $106,700 and $107,000.
Between 13:06 and 13:36, there was a significant increase in the correction’s pace, marked by a rise in price from $107,373 to $107,671. This was followed by a steep decline.
According to technical analysis, Bitcoin’s current trading range falls within a “compression zone.” This means it’s sandwiched between two significant levels (fair value gaps) that could influence the market trend in the near future.
Should bulls regain the $109,000 to $110,000 range, the price may continue its upward momentum, potentially reaching resistance beyond $112,000. Conversely, a drop below $107,000 could lead to a test of support at approximately $106,000.
Technical Analysis Breakdown
- The decline accelerated during the 22:00-23:00 hour on May 24th with exceptionally high volume (16,335 BTC), establishing a strong volume-based resistance near $108,300.
- Support has formed in the $106,700-$107,000 zone where buyers emerged during the 09:00-10:00 period on May 25th, though recovery attempts have been modest with price consolidating around $107,500.
- The overall technical structure suggests a short-term bearish trend with potential for further consolidation before directional clarity emerges.
- Bitcoin experienced significant volatility with a notable price surge from $107,373 to $107,671 between 13:06-13:36, followed by a sharp reversal that saw prices decline to $107,393 by 14:00.
- The most substantial price movement occurred during the 13:35 minute candle where BTC jumped nearly $150 with exceptionally high volume (148.76 BTC), establishing temporary resistance around $107,630.
- Support formed near $107,400 where buyers emerged during the final minutes of the period, though the overall technical structure suggests continued consolidation within the broader correction from the $109,239 high.
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.
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2025-05-25 19:35