Bitcoin Roils Markets With Big Crypto Week Incoming

In a dramatic weekend move that captured headlines across the Bitcoin news space, Bitcoin surged toward its all-time high over the weekend, before sharply reversing to dip below $102,000, reigniting questions whether this is a healthy correction or a warning of deeper volatility ahead.

Bitcoin Price Volatility: Record Test and Sharp Drop

Bitcoin price tested key resistance twice during a strong two-week rally. The first spike pushed the Bitcoin price to $106,000, only to retrace to $103,000 within hours. A second attempt briefly took Bitcoin to $107,000, its closest approach to the $109,000 record set earlier this year.

But the rally lost steam. Bitcoin reversed quickly, shedding 4.77% and briefly dipping below $102,000, its sharpest daily loss in over 30 days.

At the time of writing, Bitcoin was trading just above $103,500, according to CoinMarketCap data.

Bitcoin attempted to test its all-time high levels twice on May 18. Source: Tradingview## What’s Behind the Latest Bitcoin Price Move?

This sudden volatility has sparked widespread attention across Bitcoin news space. One key factor? Trading volume.

Bitcoin’s 24-hour volume jumped over 80%, surpassing $63 billion. The surge followed weeks of steady gains, with the Bitcoin price climbing more than 20% in May alone.

However, analysts say this rally differs from previous retail-fueled hype cycles. This time, strong inflows from U.S. spot Bitcoin ETFs—driven by traditional finance (TradFi) investors—are powering the price action.

“Bitcoin is surging, but it’s not crypto-native traders driving the rally, it’s traditional finance (TradFi) retail investors,” says crypto analysis firm 10x Research in their newsletter.

According to SoSoValue, U.S. spot Bitcoin ETFs saw $3.35 billion during the first three weeks of May, following a $3 billion injection in late April. In total, more than $6 billion has flowed into Bitcoin ETFs in less than a month.

Over $6 billion has flowed into U.S. spot Bitcoin ETFs since the end of April. Source: SoSoValue This level of investment activity hasn’t been seen since mid-January, around the time Donald Trump was sworn in as U.S. President.

Institutional Players Double Down on Bitcoin

Beyond ETFs, major firms like MicroStrategy and Metaplanet continue to reinforce their bullish stance on Bitcoin. According to 10x Research, both companies have adopted an aggressive strategy—selling overvalued shares to accumulate more BTC.

Meanwhile, the broader macroeconomic picture is also playing a role. The Federal Reserve recently opted to hold interest rates steady at 4.25%–4.50%, citing conflicting economic signals.

Bitcoin Price Outlook: Is This Just a Dip?

Following the strong rally, Bitcoin is expected to enter a period of sideways movement or “chop” before resuming its upward trend, according to crypto trader and analyst Astronomer on X.

Bitcoin is also showing a classic bearish divergence, as its relative strength index (RSI) showed a lower high on a daily timeframe.

Meanwhile, on the three-day timeframe, the right shoulder of an inverse Head-and-Shoulders pattern is forming, typically considered a bullish long-term signal once the neckline is broken.

Analysts say the immediate priority for Bitcoin bulls is to defend the critical support zone between $97,000 and $98,500, a level seen as pivotal for maintaining upward momentum.

Bitcoin News to Watch: Regulation on the Horizon

In a major regulatory development, the U.S. Senate is reportedly close to voting on a bipartisan bill that would establish a legal framework for stablecoins.

If passed, this legislation could ease regulatory uncertainty and open the door for more institutional capital to flow into crypto, particularly Bitcoin.

Why This Matters

This week’s dramatic Bitcoin price swing has everyone watching it closely. While short-term volatility may spook some, growing ETF inflows, institutional adoption, and possible regulatory clarity continue to build a bullish long-term case.

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