Bitcoin’s journey toward reclaiming new highs has hit a temporary roadblock. Despite briefly tapping $109,400 over the weekend, the world’s largest cryptocurrency has once again stalled just below the psychological barrier of $110,000. Currently hovering around $108,200, Bitcoin appears to be consolidating—but two key signals are flashing caution: declining whale activity and signs of market exhaustion.
A Weekend Rally Fizzles Out
On Sunday, Bitcoin opened the trading session with promising momentum. Buyers pushed the price up to $109,400, inching closer to the elusive $110K mark. However, that excitement was short-lived. The rally quickly lost steam, and BTC slid back to $108,000, marking a modest 1.5% drop. Notably, this came as trading volumes significantly declined—down to just $26 billion compared to the $75 billion seen late last week during Bitcoin’s surge to its $110,624 all-time high.
Such weekend slowdowns aren’t new in the crypto world. Liquidity often thins out during off-peak hours, especially when there’s no fresh macro catalyst. But this time, the stall appears to go deeper than low participation.
Whale Activity Pulls Back—A Sign of Exhaustion?
Perhaps the most telling indicator of Bitcoin’s pause is the dramatic drop in large-scale transaction volume. Just days ago, on May 22, whale activity spiked to $112.6 billion—driving BTC from $105,780 to over $111,800 in two days. But since then, the momentum has rapidly faded.
By May 24, whale transactions had plummeted to just $48.15 billion—a staggering 57% drop in less than 48 hours. This pullback is raising eyebrows among analysts who see it as a sign that institutional buyers and large holders are stepping back, at least temporarily. Without their weight behind the move, Bitcoin’s push above $110K has lacked conviction.
Moreover, much of Bitcoin’s recent strength has come from corporate entities like MicroStrategy and Metaplanet, as well as continued inflows into BTC ETFs. If this demand eases, BTC may struggle to sustain any breakout attempts.
RSI Cools Off as Bulls Regroup
The technical picture mirrors the cooling sentiment. The Relative Strength Index (RSI), which recently hovered around 74, has now dropped to 63.39. While this pullback helps deflate the risk of an overheated market, it also signals waning buying pressure.
Interestingly, despite these signs of fatigue, Bitcoin is holding its ground structurally. The price has remained above the $106,100 breakout level for five consecutive daily closes—a strong indication that bulls are not giving up just yet.
At the same time, the MACD indicator is flattening out, with the histogram showing little momentum and the MACD line teetering just above the signal line. This suggests a phase of sideways movement rather than a clear reversal.
Key Support and Resistance Levels
From a technical standpoint, the $106K–$107K zone is emerging as a crucial anchor. Bitcoin is still trading above both its 5-day simple moving average ($107,856) and 13-day SMA ($106,216), reinforcing the idea that the current dip is more consolidation than collapse.
Should BTC close below this support, however, we could see further downside toward $104K–$105K, an area where prior breakouts and moving averages converge to offer layered defense.
What’s Next?
For Bitcoin to convincingly break through the $110,000 barrier, renewed interest from whales and institutional investors will be essential. Until then, BTC is likely to continue consolidating in a tight range, awaiting the next big spark—whether that comes from macroeconomic news, ETF momentum, or a return of trading volume.
In the meantime, traders remain cautiously optimistic, keeping one eye on technical signals and the other on whale wallets. The game of patience continues—but in crypto, things can change in a flash.
