After a strong nine-day bullish streak, Bitcoin (BTC) dropped by 5.87%, falling from a peak of $91,765 to a low of $86,682.
Pennsylvania’s new bill allows the state treasury to invest up to 10% of its $7 billion fund in Bitcoin to hedge against inflation.
After maintaining a 9-day consecutive bullish streak, Bitcoin (BTC) drops over 5.87% in the last 24 hours, falling from a peak of $91,765 to an intraday low of $86,682.
However, the flagship cryptocurrency is currently attempting to recover from earlier losses during Asian trading hours. At the time of writing, Bitcoin is priced at $89,664 with a market cap of $1.77 trillion. Additionally, the daily trading volume of BTC has decreased by around 30% and now stands at $84.42 billion.
This dip comes amidst the rising speculation about potential tax reforms in the U.S. Reports suggest the administration plans to eliminate capital gains taxes (zero tax) on cryptocurrencies issued by U.S.-registered companies, sparking optimism in the crypto community.
Meanwhile, Pennsylvania’s House of Representatives has introduced the Bitcoin Strategic Reserve Act, a bill proposing the state Treasury invest up to 10% of its $7 billion fund in Bitcoin. This move aims to hedge inflation and diversify investments, highlighting Bitcoin’s growing mainstream appeal.
Crypto Community Remains Bullish as BTC Consolidates Near Key Levels
On the other hand, big-shot profiles and many crypto analysts predict that Bitcoin’s next “target is $100.” MicroStrategy CEO Michael Saylor recently expressed confidence in BTC’s potential to reach $100,000 soon. “Bitcoin is going ballistic,” he tweeted, hinting at a “$100,000 party” to celebrate its rise. Saylor also dismissed fears of a major pullback, asserting that BTC is unlikely to fall below $60,000.
Further, Matthew Sigel, head of digital assets at VanEck, echoes Saylor’s optimism, predicting Bitcoin could reach $180,000 by year-end.
Bitcoin is currently trading around the $89.6K zone, showing signs of consolidation as it approaches a key pivot at $88,650. However, the immediate resistance lies at $91,032, with higher targets at $93,062 and $95,100.
On the downside, immediate support is at $86,550, followed by $86,100 and $85,250. The 9-day EMA on the 4-hour chart at approximately $89,067 offers support, suggesting a neutral to slightly bullish trend if prices remain above this level. Additionally, RSI stands at 62, indicating that Bitcoin is neither overbought nor oversold, maintaining a balanced momentum.
As BTC consolidates, the big question remains: Will it extend its drop or break through to new highs? Check out TheNewsCrypto’s Bitcoin price prediction to know more.