Bitcoin’s price is seemingly stuck in a holding pattern, trapped between $106,600 and $110,700, frustrating traders eager for a breakout. Despite a bullish sentiment, the cryptocurrency’s journey towards new all-time highs is stymied by a formidable resistance at $110,000. This has been the scene since May 23, leaving market participants in a state of suspense.
The $110,000 Conundrum
Market data from Cointelegraph Markets Pro and Bitstamp reveals that Bitcoin’s attempts to surpass the $110,000 mark have been met with stiff resistance. Analyst BitMonty highlighted this in a recent analysis on X, observing that while Bitcoin has broken out of a previous triangle pattern, the critical resistance level remains unyielding. “A breakthrough could propel Bitcoin to new highs,” he noted, “but failure to do so might push prices back toward support zones.” As explored in our recent coverage of Bitcoin Traders Brace for ‘Sell in May and Go Away’ as Seasonality Favors Bears, seasonal trends could also play a role in Bitcoin’s current price stagnation.
Santiment, a market intelligence firm, has observed that this resistance ceiling is sapping the enthusiasm among traders. “There’s a bit of FOMO as Bitcoin hovers around $110,000,” the firm shared on X, “but the euphoria has settled somewhat. Traders are grappling with doubt as the market defies their expectations.”
Macroeconomic Jitters
The current macroeconomic climate is adding another layer of complexity to Bitcoin’s price dynamics. Rising bond yields and the anticipation of the Federal Reserve’s latest meeting minutes are causing ripples across the crypto markets. Investors are on edge, seeking signals about future interest rate movements, especially after the Fed’s decision to hold rates steady on May 7. This aligns with the insights shared in Crypto Daybook Americas: All Eyes on Jobs, Fed as Bitcoin Prepares for Breakout Rally, where the focus on economic indicators is highlighted as a key factor influencing Bitcoin’s trajectory.
In addition, the release of the April Personal Consumption Expenditures (PCE) Index and initial jobless claims on May 29 could further sway market sentiment. These economic indicators, coupled with Nvidia’s earnings report, could influence tech markets and, by extension, cryptocurrencies. A negative surprise from Nvidia might trigger a broader market sell-off, exerting additional pressure on Bitcoin.
Further complicating the landscape, the ongoing 2025 Bitcoin conference in Las Vegas is drawing attention. Speeches by Trump family members have historically led to significant market volatility. QCP Capital reminded investors of last July’s Nashville event, where Trump’s keynote coincided with a sharp spike in volatility and a subsequent 30% drop in Bitcoin’s value. “The probability of a similar event now seems low,” they commented in a May 27 Telegram note, “but market positioning indicates a cautious approach.”
Navigating the Liquidity Maze
Trader Daan Crypto Trades emphasizes the importance of liquidity clusters hovering around the $110,000 mark. “The longer Bitcoin lingers here, the denser these clusters become,” he explained. “There’s a significant cluster at $106K, with others stretching from $111K and beyond.” He advised traders to watch for price movements toward these regions, which often act like magnets.
Michael van de Poppe, founder of MN Capital, underscores the necessity of maintaining support around $102,000-$104,500 to avoid losing upward momentum. This zone could be pivotal in determining Bitcoin’s short-term trajectory.
As Cointelegraph has noted, Bitcoin is in an “overheated zone,” where persistent profit-taking might hinder further growth. The coming days will be crucial as traders and analysts alike scrutinize whether Bitcoin can muster the strength to break free from its current shackles.
The road ahead for Bitcoin is fraught with challenges, and the market’s next moves remain unpredictable. Will Bitcoin shatter the $110,000 barrier, or will macroeconomic forces keep it tethered within its current range? The crypto community watches, waits, and speculates.
Source
This article is based on: Why is Bitcoin price stuck?
Further Reading
Deepen your understanding with these related articles:
- Bitcoin price about to ‘blast’ higher as Fed rate cut odds jump to 60%
- Bitcoin eyes gains as macro data makes US recession 2025 ‘base case’
- Stagflationary Data Puts Pressure on Bitcoin, Stocks
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
