Bitcoin Faces Resistance as Trump Media Invests $2.5 Billion in Cryptocurrency

Bitcoin's latest price was $, in the last 24 hours. Bitcoin is currently facing a critical resistance level, with traders closely monitoring the asset’s trajectory. The stablecoin ratio has climbed into historically risky territory, suggesting that traders might start locking in profits. This could indicate a local top, especially when considering how previous rally phases typically behave near major resistances. The momentum indicators also suggest a cautious approach, currently entering an overbought zone. Although it does not signify a definitive sell-off, combined with rising resistance markers, the probability of a pullback seems more likely.

Despite the immediate concerns, long-term metrics provide a more optimistic outlook for Bitcoin. This segment of data reflects that the cryptocurrency is currently positioned within a favorable range, historically associated with smooth consolidations or corrections rather than peak formations. Currently, ample liquidity in the market, driven by substantial stablecoin reserves, suggests that Bitcoin could resume its upward momentum once any short-term volatility settles. Indicators do not yet show signs of distribution, reinforcing the theory that a broader bull run may continue to unfold.

Observers and traders alike must remain vigilant of the critical resistance area, which serves as a bellwether for market sentiment. A rejection here could catalyze a wave of profit-taking, prompting Bitcoin to transition into a healthy correction phase. Conversely, a breakout beyond this resistance could negate short-term cautiousness, strengthening the bullish narrative and possibly opening the path for further growth. The long-term oscillator remains optimistic, indicating there is still upward potential if liquidity conditions stay favorable.

In summation, Bitcoin’s current landscape presents a juxtaposition of short-term challenges against a backdrop of long-term growth potential. While speculative trades may amplify short-term volatility, the foundational metrics suggest that the bull market could remain viable, provided that liquidity continues to support upward movement.

Bitcoin’s upward momentum is hitting its first real test soon. With the stablecoin ratio channel flashing signs of caution and the resistance forming, short-term sell pressure may be cooking. Temporary rotations into stablecoins could follow. However, beneath it all, the broader bull cycle may still be intact.

Bitcoin’s short-term outlook has been seeing its first signs of fragility. Its short-term stablecoin ratio channel climbed into historically risky territory, hinting at the possible formation of a local top. Such an uptick often precedes BTC-to-stablecoin rotations as traders lock in gains, especially near known resistance zones. The oscillator moved into the overbought zone on the chart, marking a point of caution. With elevated ratios and strong price resistance aligning, short-term risk might be somewhat heightened.

Despite the short-term shakiness on the charts, the long-term data seemed to tell a different story. At the time of writing, the metric sat comfortably in the mid-range of its historical cycle, a zone that has previously acted as a consolidation or a healthy correction point, rather than a peak. Liquidity has been supportive too, with ample stablecoin reserves still on the sidelines. That leaves room for Bitcoin to resume its uptrend after any short-term cooling. The long-term structure does not yet reflect distribution or late-cycle risk, affirming the idea that the broader bull market may still have legs.

All eyes must stay on the resistance zone, a level that coincides with elevated short-term risk. A rejection here could trigger a wave of BTC-to-stablecoin rotations, leading to a healthy correction. On the flip side, a strong breakout above this range would invalidate short-term caution and bring momentum. Meanwhile, the long-term oscillator suggested there’s still room for upside, keeping the broader bull structure intact if liquidity remains favorable.

Trump Media and Technology Group Corp. announced that it has entered into subscription agreements with approximately 50 institutional investors, under which the Company agreed to issue and sell approximately $1.5 billion in the Company’s common stock and $1.0 billion in principal amount of 0.00% convertible senior secured notes, for gross proceeds of an aggregate approximately $2.5 billion, in a private placement offering. The Offering is expected to close on or about May 29, 2025, subject to satisfaction of customary closing conditions. The Company intends to use the proceeds for the creation of a Bitcoin treasury. One of the largest Bitcoin treasury deals of any public company, the move closes Trump Media’s previously announced special acquisition fund, which is one of numerous ways, including through potential mergers and acquisitions, that the Company is aiming to expand its reach throughout the America First economy. Trump Media’s CEO and Chairman Devin Nunes said, “We view Bitcoin as an apex instrument of financial freedom, and now Trump Media will hold cryptocurrency as a crucial part of our assets. Our first acquisition of a crown jewel asset, this investment will help defend our Company against harassment and discrimination by financial institutions, which plague many Americans and U.S. firms, and will create synergies for subscription payments, a utility token, and other planned transactions across Truth Social and Truth+. It’s a big step forward in the Company’s plans to evolve into a holding company by acquiring additional profit-generating, crown jewel assets consistent with America First principles.” The $2.5 billion Offering, comprising approximately $1.5 billion in Trump Media common stock at the last market price and $1.0 billion in convertible notes at a conversion price equal to a 35 percent premium, will place Bitcoin on Trump Media’s balance sheet alongside existing cash, cash equivalents, and short-term investments totaling $759.0 million as of the end of the first quarter of 2025. Crypto.com and Anchorage Digital will provide custody for Trump Media’s Bitcoin treasury.