Bitcoin Analysis on May 29, 2025: Volatility and Market Outlook

Analysis of Bitcoin on May 29, 2025: Price volatility, economic factors, and market predictions.

On May 29, 2025, Bitcoin remains a focal point in financial markets, but with volatility that has traders on edge. The price hovers between $107,000 and $109,000, reflecting a slight decline from its recent peak of $112,000. This volatility stems from a mix of technical factors, market behavior, and macroeconomic conditions. Technically, Bitcoin is in a corrective phase after hitting its all-time high. The Relative Strength Index (RSI) on the daily chart has dropped to around 64, retreating from the overbought level of 70, signaling fading bullish momentum. A bearish crossover in the MACD further suggests potential short-term downside. However, a strong support level at $105,000 could prevent deeper declines, while the $112,000 resistance remains a key hurdle for any upward move. Macroeconomic factors are also at play. Recent statements from banking authorities about monetary policy, particularly the reduced likelihood of significant rate cuts, have tempered expectations for rapid growth in high-risk assets like crypto. Additionally, profit-taking by short-term traders following the recent rally has contributed to the downward pressure. Data indicates that approximately 8,000 BTC were recently transferred from older wallets to exchanges, suggesting selling by long-term holders. Despite this, positive signals persist. Bitcoin exchange-traded funds (ETFs) have seen robust inflows, with over $5 billion in new capital in May alone, reflecting sustained institutional demand. Some analysts also point to a bullish divergence in the RSI, which could indicate weakening bearish momentum and a potential price reversal. On a broader level, political support is noteworthy. Certain U.S. states are exploring legislation to establish strategic Bitcoin reserves, which could bolster market confidence. However, these developments are in early stages and have limited immediate price impact. In summary, Bitcoin on May 29, 2025, is at a critical juncture. Traders should monitor key support and resistance levels and consider cautious strategies like staggered buying near $105,000. While a short-term correction is likely, the medium-term outlook remains positive with new capital inflows and market stabilization.