Bitcoin Holds Above $104,500, Up 1.94% Amid Tax Reform Calls

Bitcoin has maintained a bullish trend by holding above the key $104,500 support level, reinforcing its upward momentum. This level serves as a crucial foundation for the current upward structure, with Bitcoin trading at $107,760, up 1.94% on the day after rebounding from a recent low of $104,080. The weekly chart shows price consolidation between $110,000 and $115,000 following a strong rally, with earlier breakout points at $95,000 and $72,000 continuing to act as major support levels. Analysts note that Bitcoin’s ability to form higher highs and higher lows keeps the uptrend intact as long as $104,500 holds.

While the bullish momentum continues, immediate resistance is seen at $112,115. A move above this level could lead to further gains and possibly new quarterly highs. Until then, Bitcoin remains range-bound between $104,000 and $112,000. The Relative Strength Index (RSI) stands at 55.61, showing stronger bullish pressure, while the RSI average is 51.26. These indicators point to healthy market conditions, with buyers defending key levels.

Policy discussions are unfolding alongside market action, with Senator Cynthia Lummis raising concerns over double taxation on Bitcoin miners and stakers. She stated they are taxed both when they receive block rewards and when they later sell them. MicroStrategy’s Michael Saylor supported Lummis’ stance, urging lawmakers to eliminate what he called an unfair tax policy. He stressed that ending double taxation is critical if the U.S. wants to lead in Bitcoin innovation. Both figures are pushing for urgent tax reform to support crypto growth in the U.S. Their statements reflect growing industry pressure for a more supportive regulatory framework that aligns with the evolving digital asset economy.

Bitcoin has maintained its position above $104,000, demonstrating resilience amidst calls for tax reform from global leaders. This stability comes as institutions continue to invest heavily in the cryptocurrency, with spot ETF inflows persisting for three consecutive weeks. The sustained buying indicates a strong institutional interest, which has been a key driver of Bitcoin's recent performance. The demand for Bitcoin has been bolstered by significant institutional purchases. MicroStrategy, a prominent player in the Bitcoin market, recently added over 10,000 new BTC to its portfolio, bringing its total holdings to 592,100 BTC. This move underscores the growing confidence among institutional investors in Bitcoin as a store of value and a hedge against inflation.

The strong performance of Bitcoin has also been influenced by regulatory developments. The passage of a tax break in Ohio has been seen as a positive step for the cryptocurrency industry, potentially reducing the tax burden on Bitcoin transactions and encouraging further adoption. Additionally, the addition of Bitcoin to the list of assets supported by a major cryptocurrency exchange has provided more liquidity and accessibility to the market. The current price of Bitcoin, hovering above $104,000, reflects a bullish sentiment among investors. Analysts have predicted that Bitcoin could reclaim the $113,000 mark by July, driven by strong ETF inflows and continued institutional buying. However, it is important to note that these predictions are based on current market conditions and may be subject to change.

The strong performance of Bitcoin has also been influenced by the increasing illiquid supply of the cryptocurrency. The illiquid supply, which refers to the amount of Bitcoin that is not actively traded and is held for long-term investment, has climbed to over 14 million BTC. This trend reflects a strong HODL (hold on for dear life) mentality among investors, who are choosing to hold onto their Bitcoin rather than sell it. The stability of Bitcoin above $104,000 comes at a time when global leaders are calling for tax reform. The demand for tax reform has been driven by concerns over the impact of high taxes on economic growth and innovation. The passage of tax reform could provide a boost to the cryptocurrency industry, as it would reduce the tax burden on Bitcoin transactions and encourage further adoption.