Key takeaways:
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Bitcoin price is capped at the $110,000 level due to sellers and a decrease in spot volumes. Leverage use is driving current rallies into this resistance level.
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Traders are watching today’s volumes to see if emerging intraday trends are followed at the US open on May 27.
Bitcoin (BTC) price staged a mild recovery over the weekend, but gains above $110,000 are being capped by selling. Data from Glassnode shows “net distribution” (selling) from the cohort holding more than 10,000 Bitcoin, but cohorts below this level have continued to accumulate.
The spot and futures cumulative volume delta at Binance exchange reflect persistent selling when BTC price approaches the $110,000 level.
The Sunday (May 25) futures market-driven surge back to $110,000, following US President Donald Trump’s announcement that EU Commission President Ursula von der Leyen had contacted him, suggesting a roughly one-month extension to delay the 50% EU tariffs that were slated to start on June 1.
Compared to last week’s data funding rates have cooled, especially at Hyperliquid (orange line), where trader James Wynn alternated between a $1.2 billion 40x long position and a $500 million leveraged short position, both of which are now closed.
In terms of taking out the resistance seen at $110,000, flows could possibly remain suppressed as US markets are closed for the Memorial Day holiday, so the daily open market demand seen by the spot Bitcoin ETFs, which accounted for $8.36 billion in BTC purchasing since the start of April, are paused for the day.
Liquidation heatmap data crypto analytics platform TheKingfisher shows margin traders are overweight on the long side, with the potential for liquidations starting below $109,000 to $107,000.
On the other hand, CoinGlass data hints that a BTC price push through the $110,000 resistance could trigger a short liquidation that could quickly result in a rally to $114,000.
In terms of the purely technical-focused price outlook for the week, traders are likely watching today’s price action to see if any futures and spot CEX market upside is followed by bullish flow into the March 27 equities and TradFi crypto markets open.
Related: BTC price seeks $155K ‘trigger’ — 5 things to know in Bitcoin this week
As things currently stand, a block of asks can be seen at $114,000 and $119,000 at Coinbase Pro, while bids start at $104,000 and intensify as the price draws closer to $102,000-$100,000.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
