Buying BTCUSD amid growing institutional adoption with target 110,000

During the first half of Tuesday, May 20th, bitcoin (BTC) shows a pullback following its strong growth earlier this week. The price has dipped below $105,000 despite having hit a local high near $107,000, triggering increased activity from both bulls and bears in the market.

This week, an Australian court ruled to recognize bitcoin as a form of money rather than a taxable asset. This landmark decision could significantly reduce tax burdens for BTC holders in the region, as it opens the possibility to reclaim up to $640 million in capital gains taxes from previous bitcoin transactions. Such positive news may strengthen cryptocurrency adoption and boost investor demand, potentially supporting bitcoin's price growth.

Moreover, the White House advisor’s proposal to purchase bitcoin using profits from gold reserves reinforces BTC’s perception as a hedge asset, competing with traditional safe havens like gold. The potential acquisition of up to 1 million BTC over five years would create sustained long-term market demand, which could further support its price.

Additionally, JPMorgan’s move to offer clients direct bitcoin exposure, bypassing futures contracts, has emerged as a significant vote of confidence in cryptocurrency. This step underscores bitcoin’s growing legitimacy as an investment asset and expands access to a broader investor base. The firm also plans to provide access to bitcoin ETFs.

The technical picture confirms a robust uptrend, supported by the EMA (50) and EMA (20) remaining below the current price. The Relative Strength Index (RSI) at 82 signals overbought conditions, though this may prove temporary given the strong bullish momentum. The 103,000 level–where substantial buy−side liquidity is concentrated–now serves as key support, while resistance sits between 107,000 and 110,000.

Current recommendation:

Buy BTCUSD at the current price. Take profit – 110,000. Stop loss – 102,500.