Bitcoin Stabilizes at $105K Amid Trump-Musk Fallout — Is a Breakout to $120K Next?

Sean Williams
Bitcoin Options

Key Takeaways

  • Bitcoin holds steady near $105,500 after rebounding from a weekend dip triggered by political tensions between Donald Trump and Elon Musk.
  • Analysts warn of imminent volatility, with key resistance at $106,600–$107,800 potentially paving the way for a breakout toward $120,000.

Bitcoin (BTC) has steadied around $105,500 after a volatile weekend, during which it briefly dipped to $100,500 following a highly publicized clash between U.S. President Donald Trump and Elon Musk. The cryptocurrency’s recovery from that low signals short-term strength, but experts warn that the market remains fragile.

Technically, Bitcoin has broken out of its two-week downtrend and is now eyeing resistance at the $106,600 level. A daily close above this threshold could validate a renewed bullish trend. For now, a minor rejection at this price zone is typical, though analysts caution that the current structure lacks strong conviction. The Fear & Greed Index currently reads 55—suggesting a neutral sentiment as traders await a decisive catalyst.

Corporate Bitcoin Treasuries Signal Institutional Confidence

Fueling Bitcoin’s recent support has been a surge in institutional interest. Trump Media and Technology Group revealed plans for a $2.5 billion Bitcoin treasury, followed swiftly by GameStop’s acquisition of 4,710 BTC. These bold moves have reinforced confidence in Bitcoin’s long-term prospects.

Other corporate players are also doubling down. Strategy announced a $1 billion perpetual preferred stock offering, allocating a significant portion for further Bitcoin purchases. Japan’s Metaplanet continues to expand its BTC holdings, signaling that the corporate accumulation trend may just be getting started.

Volatility Looms as Indicators Tighten

From a technical standpoint, several indicators suggest Bitcoin is gearing up for a major move. The On-Balance Volume (OBV) has leveled off near 1.84 million, indicating a slowdown in buying without increased selling pressure—a cautiously optimistic sign for bulls.

Also Read: Will Bitcoin Hit $140K? Analysts Expect Short-Term Drop Before Takeoff

Meanwhile, the Balance of Power (BoP) remains negative at -0.20, implying bears still have short-term influence. Crypto analyst Crypto King notes that Bitcoin is compressing just below resistance at $107,800, forming higher lows as RSI cools and volume dries up—classic signs of an imminent breakout.

If Bitcoin can decisively flip the $106,600–$107,800 resistance zone, the next price target could be $120,000. Until then, the market remains on edge, watching for a breakout or breakdown as volatility builds.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses

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