Bitcoin rebounds modestly from critical support levels

Bitcoin started Monday with a rebound near $105,500 after falling 5.5% last week, away from recent record highs at $112,000, with the price dropping below the Fibonacci level of 0.786, with traders aggressively collecting profits. 

Despite the weakness in the last days of May, bitcoin closed the month with an 11% profit, after a 14% surge in April, sending the price towards strong resistance areas. 

Recent data showed total bitcoin holdings at central exchanges fell below 2.5 million bitcoins by the end of 2025, with the decline accelerated as the price hit a record high.

It shows that major wallets are purchasing and holding bitcoins, with companies such as MicroStrategy holding 7390 bitcoins, while both MetaPlanet and GameStop increased their holdings as well.

Record Inflows to Bitcoin ETFs 

Bitcoin exchange funds in the US had a record cash inflow of $5.23 billion, with some governments, such as the UAE and Pakistan also bolstering their bitcoin purchasing operations.

The Technical Side

Technically, bitcoin appears in a wait and monitor phase, with momentum indicators reflecting a mostly neutral status. 

The overall technical picture remains positive for the long term.

Russia Gets on Bitcoin Train

The Russian Agricultural Bank is considering the use of bitcoin to settle grain export agreements, valued at over 49.5 million tons. 

Russia has shown increasing openness to crypto adoption as a way to circumvent western sanctions. 

It would open up the agricultural commodity markets to cryptocurrencies, especially with wheat transactions. 

Strong Resistance 

Bitcoin is trying to tackle the critical $106,000 resistance, but several short-term technical indicators are offering resistance, especially the 50-day SMA.

Bitcoin recently fell to $104,750 and tested a critical Fibonacci support before rebounding, but in the four-hour time frame, the chances of a Death Cross boosts the odds of more technical losses.