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Bitcoin in ‘make or break’ zone – Trump Media hints at what’s next – Crypto News

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3 days ago

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  • Bitcoin’s Sharpe Ratio suggested controlled risk, far from the extremes seen in previous tops of 2013, 2017, and 2021.
  • Trump’s Media team signed a $2.32 billion deal to buy Bitcoin as its price action continued to trade in the larger range.

As Bitcoin [BTC] hovered above $103K on the 30th of May, holding ground despite rising uncertainty.

While the price action cooled, the Sharpe Ratio flashed a rare mid-range signal, suggesting the market may not be overheated just yet.

The metric had not reached its higher trend line, which often indicated market peaks in the years 2013, 2017 and 2021.

It was at the time of writing suggesting that moderate risk existed, which meant the market was not overheating.

The red dashed line identified very high euphoria was yet to be hit, since the Sharpe Ratio was in the middle. However, the price direction was not clear.

Many times when the market saw similar levels, rallies and corrections followed.

Source: Alphractal

Naturally, this points to a critical moment.

While the setup shows potential for more upside, traders may want to stay cautious unless the metric climbs into extreme-risk territory.

Trump’s 2.232B BTC deal amid large range consolidation

The news that Trump Media may buy BTC for $2.32 billion could drive significant changes in the BTC price because of current market trends.

As per Arkham, Bitcoin was at $105,000, which was 12.39% higher than its value from 30 days ago.

Buyers of such large amounts help make the cryptocurrency more valuable, given the growing interest and fewer coins available.

At the same time, the Sharpe Ratio pointed to a moderate level of risk and a possibility for growth, without much overexcited behavior.

BTC

Source: X

Looking back, these levels marked times before rallies and dip-downs. Completing the deal may encourage optimism, though investors may see some short-term ups and downs.

Experienced investors follow trade flows, since important purchases or sales can set off a burst of buying or selling.

Key range in focus: $97K–$99K critical zone

On the charts, Bitcoin stayed inside its limited range between $90,845 and $111,938. The recent move above the upper boundary brought a rejection that sent BTC to settle at $103,658.

There was now focus on the $97,000–$99,000 level, where three factors meet: the mid-range at $99,638, the 0.382 Fibonacci retracement at $97,622 and the 200 daily moving average at $94,717.

Reaching this support area could possibly lead to a reversal or a bounce. But if Bitcoin cannot secure this area, its price may move toward the $90,845–$90,626 support zone.

btc

Source: TradingView

Meanwhile, if BTC goes past its all-time high at $111,938 by gaining momentum, it might keep rising and start a new breakout.

Right now, the extreme highs on the range and no strong move higher mean that traders should be careful.

The 200-day moving average trended upward, and that trend could help the market bounce back if reached again.

For the moment, traders holding BTC might stand by, waiting for more obvious signs at main support and resistance points.

Next: Mantra at $0.32 as whale exits intensify: Is OM at a turning point?

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