Crypto Market Down Today: Bitcoin Faced $110k Resistance

2d ago•

bullish:

bearish:

Bitcoin couldn’t retake the $110k mark, facing a big sell-off, turning the crypto market into a bloodbath. What game is Price Volume in 24h Price 7d playing, and what can we expect from it?

Is it the geopolitical situation or pure profit taking below the all-time high? Shaking off weak hands before teleporting to a new ATH or a new bear starting?

Bitcoin and Crypto Space Dealing With Harsh Conditions

Today, Bitcoin faced a big selloff with a lot of long liquidations. This happened for various reasons, one of which was that the Fed didn’t cut rates as they said. On May 7, 2025, they announced that rates are going to stay 4.25%-4.50%.

That statement marked a sentiment shift from bullish to bearish, triggering the start of controlled profit-taking and risk deleveraging among traders.

FOMC minutes drop at 2PM EST today.

Markets are stalling like a boomer trying to post a meme.

Back on May 6–7, the Fed kept rates locked at 4.25%–4.50%.

They called the economy solid and the labor market resilient.

Classic Fed talk – calm on the mic, sweating behind the… pic.twitter.com/9Zt6ZRT5yx

— Chapo (@El_Crypto_Chapo) May 28, 2025

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Somehow, this created a rumor that the Fed will cut the rates at the June meeting or even earlier by the end of the month. All that was not supported by any reliable information, leaving the participants in chaos.

Another key factor affecting the crypto market in general is the uncertainty caused by President Donald Trump’s tariffs. These range from 10% tariffs on all imports from more than 57 countries, to staggering 145% tariffs on goods from China.

That led to a tariff trade war game that has severely disrupted the market. No longs or shorts have been safe, and many liquidations have been tested. The latest development is a 50% tariff on all European Union imports, starting June 1, 2025.

BREAKING: President Trump is slapping the European Union with a 50% tariff starting June 1st. pic.twitter.com/ZT6lZbH3p3

— Benny Johnson (@bennyjohnson) May 23, 2025

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Another trading tension that happened earlier this year was restricting Nvidia’s GPUs from being sold to China. That resulted in a $2.58 trillion sell-off in the traditional tech market, furthermore making the crypto landscape tougher.

This, as well as all regulatory and political developments, is playing a big role in crypto-behaviour. When one of the biggest, if not the biggest, industries today is taking a 180-degree turn, things can get ugly.

Crypto and Bitcoin Technical Side of The Market

Everything that we have said above aligns perfectly with the current technical side of Bitcoin and the whole crypto market. It is hard to say where exactly the bull run has started, but over the past two and a half years, Bitcoin has been printing higher highs.

Recently, BTC printed a new ATH but shortly after went down $110k mark. From a technical point of view, this is something normal for the crypto market and especially for BTC. Profit-taking is important, and this is something everybody should do.
(Source)

If BTC does not manage to reclaim that region, it can form a reversed W pattern, which can send it to the $70k mark. And we all know that this is crypto, and everything is possible, and it can be violent.

Another indicator that is showing bearish signs is RSI 14. While Bitcoin is printing higher highs Relative Strength Index (RSI) is printing lower highs. This is something that can be misleading, but after all, this shows relative strength.

(Source)

This bearish divergence can lead to some short-term to medium-term selloff, but at this point, this is completely normal.

On the daily timeframe, we can see that the price is still respecting the 200 SMA and EMA trend. We can see in recent months Bitcoin wiggling all over the place, leaving both sides with huge losses or gains.

Swings from $80k to $110k are well within the range of Bitcoin’s typical volatility.

(Source)

All that being said, this doesn’t mean we are not bullish on BTC. Short term, everything can happen, but we know Bitcoin comes stronger and ready to push for another ATH.

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