Bitcoin stalls below $110,000 as macro events weigh on momentum

Bitcoin’s price action has remained muted for over a week, stuck below the $110,000 mark since May 23. After a strong first half of the year, the world’s largest cryptocurrency is now moving sideways, trapped within a narrow band of $106,600 to $110,700. Bitcoin is struggling to establish a clear upward trend, with each attempt to break past $110,000 being rejected. According to BitMonty, a well-followed trader on X, only a clean breakout above this level could spark a new rally and potentially set the stage for all-time highs. However, repeated rejections could send the price back to the $105,000 support zone. BitMonty @Bit_Montie · Follow #Bitcoin $BTC has now broken out of the triangle pattern and is moving upwardsThe key resistance level is at $110KA breakout above this level could propel us to a new all-time highHowever, if the price is rejected at this level, it may retreat back toward the support area 12:44 PM · May 26, 2025 4 Reply Copy link Read 2 replies At the same time, the sentiment across trading communities is cooling. Market intelligence platform Santiment noted that FOMO among retail traders has subsided. Santiment @santimentfeed · Follow 😄 Are traders showing a high level of FOMO as Bitcoin’s market value ranges around the $110K level? A bit, but the euphoria has calmed down a bit. And with markets moving the opposite direction of retailers’ expectations, we want to continue to see some reasonable doubt.Over 11:39 PM · May 27, 2025 64 Reply Copy link Read 35 replies The firm explained on X that as prices linger near $110,000, euphoria is giving way to doubt, especially with markets behaving opposite to expectations. Fed uncertainty, tariffs, and inflation weigh on investor mood Bitcoin’s flat performance is also being shaped by broader economic uncertainty. Investors are closely watching macro data releases and monetary policy signals. The Federal Reserve’s latest meeting minutes, released this week, are under scrutiny for any hint on future interest rate movements. While the Fed left rates unchanged on May 7, Fed Chair Jerome Powell flagged tariffs imposed by President Donald Trump as a potential source of inflation and unpredictability. This comes ahead of a string of key economic data. The first revision of the Q1 GDP print is due before May ends, alongside the April Personal Consumption Expenditures (PCE) Index and jobless claims data on May 29. With rising bond yields already rattling traditional markets, crypto is seeing cautious sentiment carry over. Adding to the cautious tone is the broader market’s correlation with tech stocks. Nvidia’s earnings report, expected later this week, could sway investor sentiment significantly. A negative earnings surprise may not only hit equities but could extend risk-off behaviour into digital assets like Bitcoin. Trump effect and 2025 Bitcoin conference create volatility memories Another factor influencing trader positioning is the ongoing Bitcoin 2025 conference in Las Vegas. While such events usually draw attention to the crypto sector, this year’s edition is being watched more closely due to the participation of Trump family members. Historical patterns show a link between high-profile Trump appearances and increased Bitcoin volatility. QCP Capital reminded investors in a Telegram note on May 27 of the sharp 30% drop in Bitcoin following Donald Trump’s keynote at the 2024 Nashville event. At the time, 1-day implied volatility surged above 90 before quickly reversing. Though the firm sees the likelihood of a similar plunge as low this time, it noted that market memory of the July 2024 event is still influencing cautious positioning. Key support zones build as liquidity clusters grow Traders are now closely watching the key levels just below current price action. Daan Crypto Trades, a trader with over 300,000 followers on X, noted that prolonged consolidation around $110,000 is leading to thickening liquidity clusters. Daan Crypto Trades @DaanCrypto · Follow $BTC The longer price hovers around this price region, the thicker the liquidity clusters above and below will become.There’s a big liquidity cluster down at ~$106K and quite a few sitting from $111K and up.Keep an eye out for when price taps either of this regions as those 4:32 PM · May 27, 2025 280 Reply Copy link Read 56 replies He said there’s a strong zone at $106,000 and visible resistance from $111,000 upward. These levels could act as magnets for price movements in either direction, depending on whether momentum builds or fails. Further down, MN Capital founder Michael van de Poppe pointed to the $102,000–$104,500 range as critical support. Losing this zone could dent bullish momentum, while a successful retest may confirm a strong base for another breakout attempt. Michaël van de Poppe @CryptoMichNL · Follow I think that my posts on a potential correction on #Bitcoin are invalidated by that fast response on the markets. A small correction took place, but immediately bought up through which we’re looking to attack the ATHs and #Altcoins to go up.Up we go. 1:31 PM · May 27, 2025 594 Reply Copy link Read 80 replies While Bitcoin’s fundamentals remain unchanged, short-term price action appears trapped between macro headwinds, technical resistance, and trader hesitation. Until one of these factors gives way, Bitcoin may continue to hover in this tight range, leaving investors waiting for the next catalyst. The post Bitcoin stalls below $110,000 as macro events weigh on momentum appeared first on Invezz

Source: Invezz