- Bitcoin briefly touched $109,400 on Sunday, before retreating 1.5% as market volumes weakened.
- Whale transaction volumes dipped to a 5 day lows of $107 million at the weekend, signaling caution among large investors.
- RSI signal suggests overheating conditions, adding pressure at the $110,000 resistance.
Technical Resistance Of Bitcoin At $110K
Bitcoin price retreated towards $108,200 on Sunday failing to break the $110k level again. Two crucial factors seem to be restricting the next bull rally, overbought RSI levels and plunging whale volumes. The $110,000 level has become a solid resistance for Bitcoin.
Even against positive trends, the cryptocurrency is subjected to strong selling pressure within this area. The $108K–$110K area has been seen by analysts as a key zone where Bitcoin is met with significant resistance and needs high demand to break.
Weak Liquidity And Slow Growth
Market liquidity is an important factor that drives prices. At the moment, BTC market depth stays thin, constraining buy side power. Also, decelerating network expansion and decreasing whale transactions are an indication that big investors are taking a cautious stance, waiting for clearer market signals before putting in significant capital.
Whale Transactions Fall 57% as Bitcoin Bulls Lose Momentum Near $110K
BTC whale volume has fallen precipitously in the last 48 hours, sparking new concerns regarding trend exhaustion at $110,000. On May 22nd, BTC price reached an all time high of $110,624, with whale volumes reaching a record $112.6 billion for the day, highest daily volume in a month.
But action soon reversed. On May 23, volume in the large value transactions dipped to $88.5 billion, and on May 24, it had crashed to $48.15 billion. This represents a 57.2% drop in two days, exactly mirroring the BTC price fall from $110K to $108,200 at writing.
It indicates whales’ exhaustion signals, particularly after the violent upside of May 20-22, during which volumes rose from $73 billion to $112.6 billion, propelling BTC from $105,780 to above $111,80.
Should whale activity remain below the 30 day moving average volume of ~$74 billion, Bitcoin can risk retesting the $106,000, $107,000 support range prior to another breakout attempt.
In order for bulls to retake control, fresh inflows from big players are needed. Without this, the market may stay range bound, waiting for a new catalyst.
Macroeconomic Factors and Regulatory Uncertainty
Global economic trends and regulatory changes have a huge influence on the price of Bitcoin. Speculation about the inflation rate, interest rate, and regulatory environments has the potential to sway investor confidence. For example, the Federal Reserve’s monetary policy and concerns related to inflation have in the past influenced cryptocurrency prices, and any negative news on these fronts could stymie Bitcoin’s effort to surpass the $110K mark.
Will BTC Attain Its High?
Although Bitcoin has shown impressive growth, crossing the $110K mark poses complex challenges. Technical resistance, poor liquidity, overbought, profit taking mentality, and macro factors as a whole serve to hinder its progress. Investors must be keenly aware of these dynamics since success in breaking the $110K ceiling could be followed by additional gains, whereas failure to do so could be accompanied by consolidation or retracement.
The path of Bitcoin beyond $110K is dependent on a union of positive technical signals, strong market liquidity, positive sentiment among investors, and beneficial macroeconomic conditions. Until all of these factors align, Bitcoin could keep struggling with this key level of resistance.
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