Why is Bitcoin Unable to Surge Above $110k?

Bitcoin reached a peak of $110,789 earlier on Tuesday. The 2-hour chart shows that the asset recovered from a massive decline to $107k before the surge.

However, the apex coin failed to surge due to notable selling pressure at its peak. This is not the first time BTC is seeing such a trend play out. It peaked at $110,400 on Monday but retraced afterward. The largest coin ended Tuesday with a red candle, trading slightly below its opening price.

Nonetheless, the consistent selling congestion at above $ 110,000 indicates that it may be gearing up for a massive move. It’s off to another bearish start, reinforcing this conviction. Several factors contribute to the ongoing trend. 

Reflecting on trading action last week, the massive dip on Friday continues to play a huge role in the ongoing price pattern. The apex coin’s retracement was due to the negative shift in fundamentals. Trump’s tariffs kicked in again, spreading panic across the market.

Investors are yet to recover despite the President stating that the levies will not take effect until June 9. The fear and greed index remains lower it was last week, attesting to the growing bearish sentiment around Bitcoin.

Data from Santiment showed that traders are growing increasingly disenchanted with the range-bound movement over the last four days. Nonetheless, there are slight signs of FOMO. However, this is not enough to cause a massive rally. 

The chart above illustrates several levels of euphoria and their subsequent outcomes. Investors exhibit a massive fear of missing out at peak prices. However, this resulted in massive declines a few days later. For example, this trend played out on May 21. Prices plummeted a few days later and showed no signs of recovery.

Bitcoin Whales are Bullish

While Bitcoin grapples with notable selling at $ 110,000, large players are becoming increasingly bullish. One such is James Wynn. He advised everyone to go long on BTC on Tuesday and followed through by doing the same. The trader has shared several positive remarks about the apex coin’s surge over the last five days. His previous predictions coming true leave many believing he might be right this time.

BlackRock reportedly scooped up another massive amount of the largest cryptocurrency. Reports estimate the total buy to be over $400 million. The latest purchase comes days after Strategy announced its new acquisition.

Aside from the latest purchases, the one-day chart hints at further price declines. The average directional index halted its uptrend last week in response to the massive decline. The metric reveals the strength of a price move. Its downward trajectory shows that the asset is sinking further into bearish dominance.

The moving average convergence divergence displayed a bearish signal last week. Its 12-day EMA intersected the 26-day EMA, and the negative divergence is ongoing. The ensuing price struggles are in response to the trend.

Nonetheless, the Pivot Point Standard shows massive selling congestion around the second pivot resistance. Bitcoin has failed to end an intraday session above the mark over the last five days—the metric hints at a decline to the first pivot resistance at $101,800. However, prices may linger around $106k before retracing to this level. 

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