Bitcoin (BTC) Reaches $105,000: is $109,000 Possible with New SEC Regulations?

Bitcoin moved up on Wednesday and reached $105,683.70 by the morning after an overnight bounce following the regulatory news. It’s a 4.3% uptick after the US Securities and Exchange Commission (SEC) announced a task force to work on crypto regulations.

BTC weekly price chart. Source: Bravenewcoin

The US Securities and Exchange Commission (SEC), under acting Chair Mark Uyeda, has launched a crypto task force to write regulations. This is a big change in the US regulatory landscape, with the SEC, Commodity Futures Trading Commission (CFTC), and other government agencies working together to create crypto policies.

President Donald Trump is pro-crypto. He ran on a platform to make the US a global crypto hub and is expected to reduce regulations and end lawsuits against major crypto companies like Coinbase and Ripple.

MicroStrategy, a Bitcoin whale, is buying more. Shareholders approved an increase in authorized Class A common shares from 330 million to 10.3 billion. With this, they can raise $42 billion by 2027 through equity and convertible note offerings.

They already have $47 billion in Bitcoin, over 2% of the total supply. They just announced $1.1 billion in Bitcoin buys, so they are a major player in the market.

Following initial declines after Trump’s inauguration, Bitcoin rebounded sharply. It surged 4.3% in 24 hours, trading at $105,683.7, with a 24-hour high of $107,180.92. The cryptocurrency’s all-time high of $109,390, achieved shortly before the inauguration, remains a key resistance level. BTC’s dominance remains strong, supported by a market cap of $2.09 trillion.

Bitcoin’s daily chart demonstrates a steady uptrend, supported by the 20-day EMA at $100,020. This level is acting as dynamic support for the cryptocurrency, helping it stay above the critical $102,700 mark.

BTC/USD daily chart. Source: Trading View

The RSI on the daily chart remains at 61.88, suggesting strong bullish momentum. Traders are eyeing the resistance at $107,180.0 as a key level to surpass, which could pave the way for a significant rally.

Crypto analyst Michael on X suggests that Bitcoin is stalling at a critical macro trend line. This trend line has been resistance in previous bull cycles.

He says if it breaks above this level, it could be a big move with no ceiling. Michael also said if the Bitcoin price breaks $108,000, it could hit $150,000 next, which is in line with long-term bullish projections.

Source: X

Bitcoin’s price is in a consolidation phase within an up channel. As it approaches $110,229 it needs to break above to continue the rally. If it fails to break it could be a short term pullback to the EMA levels or $100,000 psychological support. So we need to watch the breakout or rejection at key levels.

The overall cryptocurrency market has mirrored Bitcoin’s recovery. Ethereum rose 3.1%, reaching $3,323.10, while XRP gained 4.5%. Other altcoins like Solana, Cardano, and Polygon saw increases ranging from 5% to 11%. Memecoins also experienced growth, with Dogecoin surging 9.1%.

The global crypto market cap increased by 3.49%, reaching $3.64 trillion, despite a 37.40% decline in trading volume. The Fear & Greed Index rose to 66, signaling heightened optimism but cautioning against excessive greed among investors.

The launch of the $TRUMP memecoin is controversial but it shows crypto is being talked about in political and economic discussions. $TRUMP up 28% at $43.068. The broader market, including Solana’s 8.46% move, is up across the board with renewed investor confidence.

Bitcoin is testing critical resistance levels, with immediate resistance at $107,180.92 and $109,430 and support at $102,700. These levels will determine Bitcoin’s short-term direction.

Analysts say if the momentum is maintained, it could retest the all-time high. The move to $105,683.7 has gathered market optimism and could hit $160K by the end of February if historical patterns repeat.

Source:X

Institutional involvement has been a big factor in Bitcoin’s rise. Big asset managers like BlackRock and Fidelity are increasing their focus on Bitcoin spot ETFs, which now have more assets under management than gold ETFs. Italy’s biggest bank, Intesa Sanpaolo, has made its first Bitcoin spot purchase.

Despite short-term issues like rising US Treasury yields and Fed tightening, Bitcoin’s long-term prospects are good. Analysts project prices to reach $150,000 to $250,000 by the end of 2025.

Bitcoin whales have accumulated over 22,000 BTC in the last 72 hours, worth $2.24 billion. Realized Cap is at an all-time high of $832 billion. Net realized profit taking has dropped 93% from December highs. Volumes are down 93% from December highs, so sell-side pressure is decreasing.

Long-term holders have gone from distribution to accumulation, and exchange inflow volumes have dropped from $526.9 million in December to $92.3 million. The market is stabilizing as it adjusts to the current price. With decreasing sell-side pressure and increasing institutional involvement, Bitcoin looks good to go up.

In the next few weeks, Bitcoin will be tested on breaking $109,000 and holding $102,700 to make way for new highs.