Bitcoin’s $90K Support Test: Bullish Continuation or Deeper Correction Ahead?
As of May 2025, Bitcoin demonstrates resilience by holding above the critical $90,000 support level despite an 8% pullback from its January all-time high of $109,114. Currently trading at $99,489, the cryptocurrency faces a pivotal moment as analysts debate whether this consolidation signals strength for another upward leg or precedes a more substantial correction. Technical patterns suggest institutional flows and macroeconomic factors will determine BTC’s trajectory in the coming weeks, with the $90K zone acting as a magnetic price floor for the digital asset.
Bitcoin Holds $90K Support as Analysts Debate Next Move
Bitcoin’s consolidation above $90,000 signals potential strength despite an 8% retracement from its January 2025 all-time high of $109,114. The cryptocurrency now trades at $99,489 as market participants weigh bullish continuation patterns against calls for deeper correction.
Technical analysts observe BTC’s magnetic attraction to the $90K support zone, with May 2025 price trajectories hinging on institutional flows and macroeconomic factors. The asset maintains its #1 market position with a $3.66 billion capitalization, demonstrating resilience after recent volatility.
Texas Joins Arizona and New Hampshire in Bitcoin Reserve Push
Texas has advanced Senate Bill 21 to authorize a state-managed Bitcoin reserve, marking the latest move in a growing trend of U.S. states embracing cryptocurrency as part of their financial strategies. The bill, now headed for a floor vote, follows similar legislative actions in Arizona and New Hampshire, both of which passed Bitcoin reserve laws within days of each other.
This bipartisan momentum reflects a broader institutional shift toward bitcoin adoption, with states positioning themselves to capitalize on the digital asset’s potential as a treasury reserve. The rapid succession of these bills suggests a coordinated effort to establish regulatory frameworks ahead of potential federal action.
Market observers note the developments could signal increasing mainstream acceptance of Bitcoin’s role in institutional portfolios. The state-level actions come amid heightened global interest in cryptocurrency reserves, particularly following El Salvador’s 2021 adoption of Bitcoin as legal tender.
Strike Processes $10M in Bitcoin-Backed Loans Within 48 Hours of Launch
Bitcoin collateralized lending platform Strike has crossed $10 million in loan volume just two days after going live. The rapid adoption signals growing demand for crypto-backed financial products as digital assets gain institutional acceptance.
Jack Mallers, CEO of parent company Zap, confirmed the milestone via Twitter on May 7. The platform enables BTC holders to borrow against their holdings without liquidating positions—a service gaining traction across crypto markets.
Bitcoin Dominance Set to Soar: Will It Reach 2019-2021 Levels?
Bitcoin’s market dominance is poised for a significant surge, with analysts eyeing a potential return to the highs of 2019-2021. Institutional momentum, spearheaded by MicroStrategy’s aggressive accumulation and the influx of ETF investments, has already propelled BTC’s dominance above 65%—a threshold many deemed improbable.
The altcoin market faces increasing pressure as Bitcoin’s hegemony intensifies. Selective positioning becomes critical for altcoin investors, with weaker projects likely to be sidelined in this capital rotation. Daan Crypto Trades notes the trend could persist absent major macroeconomic shifts, though the trajectory remains uncertain.
Bitcoin Faces More Directional Uncertainty, What’s Happening
Bitcoin’s recent rally faltered as bulls retreated, underscoring renewed bearish pressures. The cryptocurrency had shown strength since mid-April but now grapples with overbought conditions and a Fibonacci retracement zone test.
Despite briefly pushing above key resistance levels—triggering short liquidations—BTC closed the week with a 2.52% decline. Spot flows shifted to outflows as profit-taking accelerated, reflecting market indecision.
