Bitcoin Crash Fears Escalate as BTC Price Stalls Under $110K Amid $3.2B BTC Inflow

Bitcoin (BTC) is facing stiff resistance around $110,000, its previous all-time high, as fears of a deeper correction intensify. The inflow of $3.2 billion worth of BTC into exchanges adds tailwind to the ongoing uptrend. A look at Bitcoin’s technical analysis reveals that a breakdown below $107K to $108K could trigger a crash toward $102K, while a surprise bullish catalyst, such as corporate Bitcoin adoption, could catalyze a push to record highs.

Why BTC Price is Stalling

Bitcoin trades at $108,500 today, down 1.1% in the past 24 hours. The price has been range-bound between $108K and $111K for six consecutive days, reflecting weakening bullish momentum.

Key Reasons for the Stall:

CoinGape reported on Tuesday how BTC price is stalling despite OTC balances depleting by $40.8B, hinting at a potential drop. This article further expands on why Bitcoin is stuck under $110K.

Lack of News Flows: QCP Capital, a trading firm, added that the lack of catalysts and news flow is one of the reasons for BTC’s recent stick price action.

“Volatility across most asset classes continues to drift lower, as markets enter a lull amid a dearth of meaningful news flow and macroeconomic data. The news cycle remains relentless, yet markets appear increasingly inured to negative developments, brushing off headlines that might once have sparked more significant reactions.”

Overhead Resistance: The $110K to $112K zone has acted as strong resistance, facing repeated rejections. The reason for this failure in the breakout above $110,000 can be attributed to profit-taking by investors who rode the recent bull run.

Key Levels to Watch: Breakdown Risk to $102K

A quick look at Bitcoin’s 4-hour chart shows it is stuck in a $2,000 range, between the previous week’s value area high and the point of control at $110K and $108 K. Any attempts to push price lower was foiled around the $107K and $108K support zone, leading to a swift bounces.

A breakdown of the $2,000 range could result in a swift drop in the Bitcoin price to $105K, followed by $102K. These high-volume levels previously triggered impulsive moves to the upside. Hence, a revisit of this level could see a significant absorption of selling pressure, leading to a bounce.

Why $3.2B Exchange Inflow Spells Danger

According to IntoTheBlock data, the Exchange Netflow metric has spiked to 29.7K BTC as of May 28. At the current price, this inflow is worth $3.2 billion and hints at declining investor confidence. Often, a spike in exchange inflows is bearish and precedes price corrections.

The short and long-term outlook of this inflow is bearish, and investors have BTC on hand, ready to be sold, if triggered by a news or event.

Not all hope is lost. Trading firm QCP highlights a potential bullish catalyst that could undo this BTC price stagnation.

“Trump Media, for its part, is reportedly planning to raise $2.5 billion and join the ranks of corporates building a Bitcoin Reserve. If momentum builds out of the conference, we could see more firms follow the lead of Strategy and Metaplanet, offering a fresh structural bid in the market.”

A break above $112K could push BTC price higher, potentially targeting $111K ATH and potentially setting up a new one at $120K. Additionally, Trump’s $2.5B corporate BTC buying plan could spark other institutions to follow Startegy’s (formerly MicroStartegy) lead.

Final Verdict

Investors must prepare for volatility as Bitcoin remains in a high-stakes stalemate — traders should watch $107K support and exchange outflows for the next major move. A bearish breakdown below $107K risks a 5-7% Bitcoin price crash to $102K., but a corporate buying frenzy could defy the bearish setup and likely propel BTC to $120K or higher.

For a detailed, long-term price prediction for Bitcoin 2025-2030: Read This