Over the past weekend, Bitcoin (BTC) saw a modest recovery in price, but its upward momentum above $110,000 was hindered by persistent selling pressure. Data from Glassnode revealed that larger holders of Bitcoin, those with more than ten thousand coins, have been engaging in "net distribution" by selling off their holdings. On the other hand, smaller holders continue to accumulate the cryptocurrency, indicating a divergence in market sentiment among different investor cohorts.
The spot and futures cumulative volume delta at Binance exchange also reflected ongoing selling activity whenever the BTC price approached the $110,000 mark. This selling pressure coincided with a surge in the futures market back to $110,000 following a statement from US President Donald Trump regarding a potential extension of EU tariffs.
Funding rates have cooled down recently, particularly at Hyperliquid, where a trader named James Wynn closed out a significant long and short leveraged position. The decrease in funding rates might suggest a more neutral stance among traders, potentially affecting market dynamics in the short term.
With US markets closed for the Memorial Day holiday, trading volumes and price movements could be subdued, as seen in the pause in spot Bitcoin ETF netflows. However, data from the liquidation heatmap on TheKingfisher platform indicates that margin traders are heavily positioned on the long side, with the risk of liquidations starting if the BTC price drops below certain levels.
Conversely, CoinGlass data suggests that a breakthrough above the $110,000 resistance level could trigger short liquidations and potentially lead to a rally towards $114,000. Traders are closely monitoring price action to gauge whether bullish momentum in the futures and spot markets will spill over into other financial markets.
Looking ahead, technical analysis shows a block of asking prices at $114,000 and $119,000 on Coinbase Pro, with support levels starting at $104,000 and strengthening as the price approaches $102,000-$100,000. This week's price outlook remains uncertain, with various factors influencing market sentiment and price movements.
It's important to note that this article does not provide investment advice and readers should conduct their own research and evaluation before making any trading decisions. The cryptocurrency market can be highly volatile and risky, and caution should always be exercised when trading or investing in digital assets.
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