Bitcoin Hovers Above $108,000 Amid Breakout Speculation S&P 500 Rallies 21% Post-Tariff Announcements Global Money Supply Increases Despite Economic Downturn Fears BTC Price Bounces Off Trendline Awaiting Breakout

Bitcoin (BTC) has been hovering above $108,000 since the beginning of the week, sparking speculation about a potential breakout. The cryptocurrency's price movements have been closely watched, with analysts and investors alike trying to determine whether this is a final period of accumulation before a significant price surge or if a rollover is imminent.

The US stock market's closure for Memorial Day on Monday allowed the market to absorb the impact of President Trump's tariff announcements. When markets reopened on Tuesday, both the S&P 500 and the Nasdaq Composite showed steady gains throughout the day. The S&P 500, which had fallen 21% from its high due to the initial tariff announcements, has since rallied back to within touching distance of $6,000, with a potential new all-time high just above that level. Similarly, the Nasdaq Composite, which had dropped 26%, is now close to its all-time high of $20,195, supported by an ascending trendline.

Despite mainstream media reports of economic downturns and potential stock market crashes due to tariffs, the global money supply continues to increase. This trend is expected to persist into Q4 of 2025 as major economies work to service their debts. The short-term chart for BTC indicates that the price is bouncing off an ascending trendline and is heading towards a potential breakout of the downtrend line. A successful breakout is crucial for the bulls, as a breakdown through the ascending trendline could push the price back to the major support level at $106,600.

The 2-week chart for BTC presents a mixed outlook. While the current 2-week candle, like the one before it, has failed to surpass the resistance of the previous January all-time high at $109,300, the MACD indicator suggests that the lines are crossing up, and a green histogram bar is forming. This could indicate a bullish trend, but the price may dip back to confirm the $104,000 horizontal support. If this support holds, the upward trend remains intact, and a catalyst could push the price higher in the coming days. Conversely, if the resistance is overcome, the price could surge significantly.