Bitcoin price holds above $110,000 after record peak amid cooling signals

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Sholanke Dele

23.05.2025

Bitcoin price holds above $110,000 after record peak amid cooling signals — Short-term price action is currently balancing on the 20-period EMA

Bitcoin price has held above the $110,000 level for the second day, after surging to a record high near $111,921 during Thursday’s North American trading hours.

The cryptocurrency’s uptrend, which has dominated the second quarter of 2025, now faces early signs of cooling, raising questions about whether bulls are pausing or preparing for a renewed push higher.

• Bitcoin pauses above $110000 as bulls take a breather

• RSI cools off while short-term EMA holds as key support

• Traders weigh declining volume against potential short squeeze

The early part of this week was defined by strong bullish momentum, as Bitcoin posted three consecutive daily uncloses and broke through the psychologically important $100,000 mark. The move brought daily RSI readings into overbought territory since May 7, reflecting the intensity of buying pressure. However, that same RSI signal may now be reflecting price exhaustion.

BTC price dynamics (April - May 2025). Source: TradingView

Bitcoin has since entered a consolidation phase, first holding steady during Thursday’s European session, then topping out late in the North American session. That consolidation has stretched through Friday’s Asian and European hours, where Bitcoin trades near $110,200 after a mild 0.84% decline from today’s open around $111,600.

Bitcoin negative funding and price hold above $110,000 could trigger a squeeze

From a technical perspective, short-term price action is currently balancing on the 20-period EMA on the 4-hour chart, which has acted as support around $110,200. The ability of this level to hold could decide the near-term direction. A rebound from here may encourage bulls to eye the next upside target at $113,000. Conversely, a sustained break below the EMA could drive price toward $109,300, which marked the previous all-time high recorded in January.

Volume data adds a layer of concern. Despite the breakout to new highs, trading volumes have declined this week, indicating that buyers may be scaling off positions rather than adding fresh exposure at these elevated levels. This suggests that the rally is running more on price momentum than broad market conviction.

In addition, the persistence of negative funding rates means that a significant number of traders are still shorting Bitcoin despite the rally. That points to a potential squeeze scenario should the price hold firm and start rising again.

Overall, Bitcoin's consolidation above $110,000 reflects a pause in the uptrend, not a reversal. But signs of reduced buying strength and negative funding sentiment suggest traders may be entering a wait-and-see phase before the next directional push.

Bitcoin sustained inflows and volume pushed price into a seventh straight weekly gain. Technical momentum confirmed a strong breakout as price carved new highs.

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