Bitcoin Trades at $104,322 Amid US Regulatory Changes and Texas Reserve Bill

Bitcoin (BTC/USD) is currently trading at $104,322, with a slight increase of 0.14% over the last 24 hours. Traders are not only focusing on the price charts but are also preparing for significant regulatory changes from the US government. Starting January 1, 2026, the IRS will require detailed cost basis tracking for crypto assets, including Bitcoin. This new regulation will mandate precise recordkeeping, which could alter US trading strategies. Previously, traders used a pooled basis for tax reporting, but the new IRS Form 1099-DA will require detailed tracking for each wallet, similar to traditional stock trading. While this will increase transparency, it could also increase compliance costs and slow trading activity, especially for retail and institutional investors with multiple wallets.

In other news, Texas lawmakers have passed SB21, the Strategic Bitcoin Reserve (SBR) bill, with a vote of 24-7 in the Senate. The bill is now headed to Governor Greg Abbott’s desk for signing. If enacted, Texas will become the third US state with an SBR law, following New Hampshire and Arizona, and the second to invest state funds in crypto. The bill allows the Texas Comptroller to create a Bitcoin reserve from state investment funds, guided by an advisory committee. Amendments set a $500B market cap threshold for eligible assets and exclude staking options. This move comes as Texas continues to dominate US Bitcoin mining, with the highest mining hash rate, solidifying its status as a crypto hub.

Technical analysis of Bitcoin shows a mixed outlook as BTC consolidates in a narrow range of $105,000 to $103,500. On the 4-hour chart, Bitcoin is testing a downward sloping trendline, with the 50-period EMA at $106,331 capping the rally. A Doji at $104,894 indicates indecision, while a lower high pattern suggests a potential continuation of the downtrend. The MACD is bearish, with a deep red histogram and a widening gap below the signal line. Key support levels to watch are $103,501 and $102,141, while resistance levels are $106,331 and $107,914. A reversal at $103,501 could spark a move to $106,331 or higher. For traders, the strategy is simple: wait for a breakout or reversal. Without confirmation, the outlook remains bearish.