Bitcoin's Price Plunge Sparks Swiss Referendum Debate

Bitcoin's price has dropped by 10.4% this week, testing key resistance levels and sparking debate about its future. The Swiss National Bank (SNB) has rejected Bitcoin as a reserve asset, citing concerns over volatility, liquidity, and security. Despite this, a Swiss Bitcoin referendum is in motion, aiming to collect 100,000 signatures by June 2026 to force a national vote on the issue.

Technically, Bitcoin is currently trading at $85,800, with a 24-hour trading volume of $21.1 billion. It has gained 1.53% in the past day, securing its position as the top-ranked digital asset with a $1.70 trillion market cap. Bitcoin's recent bounce from the $79,100 support zone has brought it back to crucial resistance at $85,900, where it faces strong selling pressure from both the descending trendline and the 50 EMA. The current price action suggests a potential rejection at this level, as Bitcoin struggles to break above resistance. A failure to hold above $85,800 could trigger a retracement toward $83,100, with further downside risk toward $79,100.

BTC/USD must close above $86,500 with strong volume to confirm a bullish breakout, targeting $89,400 next. However, failure to hold $85,800 may lead to a drop toward $83,100, with further downside to $79,100 if sellers gain control. Switzerland's rejection of Bitcoin as a reserve asset highlights the ongoing divide between traditional finance and digital assets. While the SNB remains skeptical, a growing push for a BTC referendum could challenge the central bank's stance. At the same time, Bitcoin's price remains at a technical crossroads, with traders eyeing key levels for the next big move.