Bitcoin bulls grill sellers as Japan debt woes send gold past $3.3K

Key points:

• Bitcoin and gold move higher in step amid jitters over Japan’s debt problem reach “boiling point.”

• $108,000 remains a keen target for Bitcoin bulls amid ongoing corporate buying.

• Some still see the current BTC price uptrend coming to an abrupt end.

Bitcoin (BTC) kept up pressure on $108,000 at the May 21 Wall Street open as a trader flagged multiple bearish divergences.

BTC/USD 1-hour chart. Source: Cointelegraph/TradingView
Bitcoin joins gold in Japan debt reaction

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD returning to near the top of its intraday range as the US trading session began.

After its highest-ever daily close, BTC/USD looked increasingly primed for a rematch with all-time highs just above $109,000.

🚨UPDATE: $BTC makes history with new record daily close. pic.twitter.com/LSzuJNJUGx

— Cointelegraph (@Cointelegraph) May 21, 2025

Fresh concerns over Japan’s national debt offered a boost to both crypto and gold on the day, with the latter reaching $3,320 per ounce, its highest since May 12.

XAU/USD 1-day chart. Source: Cointelegraph/TradingView

“A fresh wave of volatility is gripping Japanese fixed income markets as 30-year Japanese Government Bond (JGB) yields surge past 3%, breaching historic levels and unsettling global investors,” trading firm QCP Capital commented in its latest bulletin to Telegram channel subscribers.

“Japan’s ballooning debt situation has long been a simmering concern, but it is now reaching a boiling point.”

On Bitcoin, QCP suggested that recent gains had been fueled by corporate accumulation, while breaking all-time highs could reawaken retail interest.

“Price action appears closely tied to treasury accumulation by Strategy and Metaplanet, who remain the headline buyers at current levels. There is growing concern that these entities may represent the last of the marginal bid, particularly with BTC hovering near ATHs,” it continued. 

“A slowdown in their buying could trigger profit-taking from other market participants and potentially reverse the prevailing uptrend.”BTC price trend strength flashes warning

Elsewhere, concerns over trend strength came from the BTC/USD chart itself.

Related: Sorry bears — Bitcoin analysis dismisses $107K BTC price double top

Popular trader Roman, among those taking a conservative view of market structure, warned that Bitcoin’s relative strength index (RSI) was now offering three bearish divergences at once on daily timeframes.

“3 levels of bearish divergences now appearing on RSI. I would expect 101 to be retested before we potentially move higher (or lower),” he told X followers. 

“I still have my sights on lower overall but could provide a decent short term entry for both shorts & longs.”BTC/USD 1-day chart with RSI data. Source: Cointelegraph/TradingView

As Cointelegraph reported, there is no shortage of bullish BTC price targets currently in force.

$116,000 is an increasingly popular area once all-time highs are breached, with a $128,000 “blow-off top” also on the radar.

Others have made much loftier predictions, including $220,000 or more in 2025.

Updating his long-term view, trader and analyst Aksel Kibar said that the bull trend “remains intact” this week, with an accompanying chart reiterating a $137,000 target. 

BTC/USD 1-month chart. Source: Aksel Kibar/X

“Despite relentless macro headwinds including surging bond yields, tariff escalations and mounting stagflation risks in the US for Q3 and Q4, BTC has demonstrated remarkable resilience over the past month,” QCP concluded. 

“That said, a breakout to new highs could ignite a fresh wave of FOMO, dragging in sidelined retail capital and pushing prices even higher.”

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.