Why is Bitcoin Struggling to Break $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.

Bitcoin Rally Pauses Below $110,000 as Bulls Retreat

Bitcoin price rallied to $109,400 on Sunday before pulling back to $108,000, pausing below the critical $110,000 resistance level. Despite the weekend lull, BTC continues to print higher lows, affirming bullish consolidation after breaking the $106,100 all-time high on May 20.

Coingecko data confirms five consecutive daily closes above this threshold, a bullish signal showing that most holders who entered above the prior peak are still unwilling to exit.

At $108,200 at press time, Bitcoin trades in a tight range but remains structurally strong in the mid-term.

Low weekend  liquidity appears to be hampering Bitcoin’s ongoing rally. Bitcoin price opened Sunday’s session with upward momentum, hitting $109,400 before rejecting again at the $110,000 barrier.

The rally faded as trading volumes thinned out, with total 24-hour volume slipping to $26 billion, nearly 70% lower Thursday’s $75 billion spike that pushed BTC to its global peak last week.

Whale Transactions Fall 57% as Bitcoin Bulls Lose Momentum Near $110K

As per data by coingecko, Bitcoin whale transaction volume has sharply declined over the past 48 hours, raising fresh concerns about trend exhaustion near $110,000. On May 22, BTC price touched a new all-time high at $110,624, with whale volumes surging to $112.6 billion, the highest daily total in the past month.

However, activity quickly reversed. On May 23, large-value transaction volume fell to $88.5 billion, and by May 24, it had collapsed further to $48.15 billion. This marks a 57.2% decline in just two days, closely mirroring the BTC price drop from $110K to $108,200 at the time of publication.

It reflects exhaustion signals among whales, especially following the aggressive upside between May 20 and 22, when volumes climbed from $73 billion to $112.6 billion, driving BTC from $105,780 to over $111,80.

BTC price failed attempt at breaching $110,000 aligns with this drop in whale activity. This affirms the overwhelming reliance on corporate demand from the likes of Strategy (MicroStrategy) and Metaplanet and Bitcoin ETF, to sustain upside momentum.

If whale participation continues to lag below the 30-day moving average volume of ~$74 billion, Bitcoin risks retesting the $106,000, $107,000 support zone before another breakout attempt.

For bulls to regain control, renewed inflows from large players are essential. Otherwise, the market could remain range-bound, awaiting a fresh catalyst.

Bitcoin Price Analysis: RSI Cools Off, but $106K Holds as Crucial Bullish Anchor

Bitcoin’s near-term outlook is cautiously constructive, with price stabilizing above $106,000, a level now acting as firm support after last week’s rejection near $112,000. However, technical momentum is cooling.

The Relative Strength Index (RSI) has pulled back to 63.39 from recent highs near 74, suggesting that the market is no longer overheated, but also hinting at a loss of aggressive buying momentum.

This RSI level puts BTC in neutral-to-bullish territory, supportive of sideways consolidation rather than an immediate breakout.

The MACD histogram continues to flatten, while the MACD line hovers just above the signal line. This signals waning bullish momentum, though not yet a reversal. A bullish crossover could reaccelerate upside, but any further weakness risks a flip into bearish divergence.

Crucially, Bitcoin is holding above the 5-day SMA at $107,856 and the 13-day SMA at $106,216, underscoring the importance of the $106K zone.

A daily close below this range could invite further selling toward the $104,000, $105,000 band, where layered support from prior breakout zones and EMAs converge.

Volume remains modest at 14.03K BTC, and traders will be watching for a return of stronger inflows before betting on another rally above the $110,00 zone.