Bitcoin’s attempt to reclaim fresh highs has encountered stiff resistance at the $110,000 level. After a blistering rally in recent months, the flagship cryptocurrency is showing signs of fatigue as large holders trim positions and institutional demand cools off. The current tug-of-war around this critical price zone could determine whether Bitcoin resumes its ascent or slips into a deeper pullback.
Whale selloffs weigh on price
On-chain data reveals that whale wallets—addresses holding 1,000 BTC or more—have offloaded over $2.5 billion worth of coins in the past week alone. These outsized sell orders have absorbed much of the recent buying pressure, leaving bids thin below the $110K mark. Market makers have struggled to rebuild support, and the influx of coins onto exchanges has driven short-term volatility higher.
Institutional interest wanes
Institutional flows into Bitcoin vehicles have cooled dramatically. ETF net inflows, once a daily headline, have tapered to multi-week lows. Meanwhile, corporate treasuries and retirement funds are adopting a wait-and-see stance, citing valuation concerns after Bitcoin’s rapid ascent. With fewer deep-pocketed buyers stepping in, the balance between supply and demand is tilting toward sellers.
Technical outlook
Technical indicators paint a cautious picture. The 14-day RSI has slipped below the neutral 50 line, hinting at waning bullish momentum. The 50-day moving average hovers just above current levels, acting as a magnet for price action. A close below $108,000 could open the door to a retest of $100K, while a definitive move above $112K is needed to signal a resumption of the uptrend.
Market sentiment and derivatives
Derivative markets reflect the slowing pace. Funding rates on perpetual futures have fallen to neutral levels after extended periods of positive skew. Open interest remains high, suggesting traders are reluctant to abandon positions entirely, but the lack of fresh leverage points to a diminished appetite for aggressive long bets. Overall sentiment has turned more cautious, with fear prevailing over greed.
Conclusion
Bitcoin stands at a crossroads as whales continue to liquidate and institutional inflows recede. The $110K zone has proven to be a formidable barrier, and a sustained breach could trigger deeper consolidation. Traders will be watching key support at $108K and $100K closely, while a break above $112K would be needed to revive bullish momentum. As market participants reassess their positions, Bitcoin’s next directional move will signal whether this pause is a healthy breather or the start of a larger correction.
A 27-year-old writer and digital storyteller with a deep interest in emerging technologies and digital finance. Currently writes about the crypto world, covering everything from blockchain innovations to global political events that influence the crypto market. With a sharp eye for trends and a passion for making the crypto space more accessible, she brings both insight and clarity to this fast-moving industry.
0 comments
Related post
Table of content