Bitcoin price range-bound near historical highs as volume dip clouds breakout potential
Bitcoin bulls defend key support
Bitcoin price continues to trade inside a tight price range on Thursday, May 29, as recent volatility compresses. After falling through Wednesday’s session, the cryptocurrency held above key support and is now attempting an intraday rebound during the Asian and early European hours.
• Bitcoin trades near $107,600 as it attempts to rebound after bearish Wednesday close
• Price compresses into a 3.5% range, while Binance volume drops to historical highs
• 20 EMA at $108,500 acts as short-term resistance for potential breakout
The broader structure shows that Bitcoin has been consolidating for five days between $110,700 resistance and $106,800 support. Wednesday’s price action extended lower but stopped at the base of the consolidation. Despite a bearish daily close, buyers managed to keep price movement trapped inside the range, preventing further selloff.
BTC price dynamics (Jan - May 2025). Source: TradingView
Today, bitcoin price opened near $107,600 and pushed higher to break short-term bearish structure near $108,000 during the Asian session. That small shift in momentum draws attention to the 20 EMA on the 4-hour chart, which currently sits near $108,500 and is acting as resistance. If buyers manage to close above this level and reclaim the 50 EMA, the door may open for a retest of Wednesday’s high at $109,300.
Bitcoin breakout requires stronger market participation as institutions dominate activity
However, since Bitcoin hit an all-time high last week, broader market participation has been limited even as trading volume on Binance has dropped significantly. This is unusual at historical highs, which typically trigger surging retail activity. The decline in volume explains the limited volatility seen recently. Over the last few sessions, the trading range has compressed to just 3.5% while intraday moves today barely exceed a 1% drop.
This subdued action reflects low conviction, especially from retail investors. So far, institutional traders appear to be keeping Bitcoin afloat within the current structure, but a breakout above resistance or below support may require renewed participation.
If retail volume picks up in the coming weeks, it could inject the needed momentum to push Bitcoin into new all-time highs. Until then, bulls are likely to defend the $106,800 support while watching closely how price reacts around the EMAs on the intraday chart.
Bitcoin price coiled structure builds tension after Doji candlestick signals indecision. RSI weakness on the 4hr chart confirmed short-term exhaustion after Tuesday's failed breakout attempt.
