Bitcoin (BTC) price traded near $122,700 amidst volatility following the token’s recent ATH scaling rally. BTC price hovered above key moving averages, signaling steady structural strength despite short-term pressure. The day’s candle’s long upper wick shows more evidence of the bulls’ presence. Bitcoin price managed to defend the daily low near the $121,200 level, recovering most of the token’s intraday losses.
The prime crypto token maintained higher lows through the week as volume profiles showed dense buyer activity near $118,600. Meanwhile, Square’s new Bitcoin integration added fresh visibility to mainstream crypto adoption. Analysts, including Michaël van de Poppe and Crypto Tony, projected a consolidation phase before a potential continuation toward new highs.
Square Bitcoin Launch Rekindles Policy Discussion
While analysts parsed Bitcoin’s structure, attention also turned to Block’s latest product rollout. Square Bitcoin expanded the company’s ecosystem to include direct Bitcoin payments and conversions.
The move will allow U.S. sellers to accept Bitcoin at the point of sale and automatically convert card sales into BTC. The update positioned Square as one of the first mainstream payment processors to integrate Bitcoin alongside traditional commerce tools. Moreover, the firm said the rollout reflected its long-term goal of making Bitcoin usable for everyday transactions rather than just investment holdings.
Shortly after the announcement, Jack Dorsey, CEO of Block, called for a de minimis tax exemption (tax relief rule exempting small Bitcoin payments from capital gains) on small Bitcoin payments.
Dorsey argued that routine transactions should not trigger capital gains events. His post drew wide attention among industry participants and lawmakers.
Sen. Cynthia Lummis responded publicly, saying she was “working on it” and encouraging voters to contact their representatives. The senator’s remarks aligned with her ongoing efforts to modernize digital asset taxation and create clearer pathways for small-scale crypto use in the U.S.
Analysts Align Around $121K Support as Token Consolidates
Meanwhile, Bitcoin’s consolidation phase attracted a wave of technical analysis from market watchers, each reading the structure around the $121,000 level differently. Independent analyst Crypto Tony maintained that the BTC USD pair’s strength remained intact.
Moreover, the analyst noted that the token could bounce around $120,500 before resuming its uptrend. Tony continued holding long positions from $109,500, reflecting confidence that the market had yet to exhaust its bullish impulse.
George, another trader, pointed to a rejection at Bitcoin’s recent resistance near $124,000. The analyst described the move as a “key area” retest and anticipated a possible liquidity sweep below the prior day’s low.
George noted the reaction near that region would determine whether Bitcoin price could recover or extend its pullback. The setup, marked by a cluster of liquidity zones, hinted at larger players attempting to trap overleveraged short-term traders before a reversal.
Meanwhile, Michaël van de Poppe highlighted Bitcoin’s strong bounce from sub-$121,000 levels, emphasizing that the dip did not reach his projected demand zone.
The veteran analyst expected further consolidation within this range, followed by a gradual uptrend and potential altcoin outperformance once market stability returned.
Adding a broader context, Tony “The Bull” Severino compared Bitcoin’s current structure with its 2019 false head-and-shoulders pattern.
Severino’s chart showed how the setup misled traders before a sharp rally, suggesting that the 2025 version could be repeating the same playbook. Another trader, Truth.phd, supported the analyst’s view, arguing that whales appeared to carve out stops before accumulation, shifting control from retail panic to institutional positioning.
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