Bitcoin Hits a Wall: $110K Resistance Rejects Rally as Crypto Markets Stumble

Crypto bulls just got a reality check—Bitcoin’s sprint toward $110K slammed into a brick wall overnight, dragging the broader market into the red. Here’s the damage report.

Why the pullback? Classic profit-taking meets heavyweight resistance. Traders who bought the dip earlier this year are cashing out before the weekend, and let’s be honest—Wall Street’s ’risk-on’ algorithms probably panicked at the first sign of sideways action.

Silver lining? This is crypto. A 10% drop barely registers as a speed bump after last year’s 300% rallies. Just another day in the most volatile asset class on earth—where ’technical analysis’ is half astrology, half self-fulfilling prophecy.

Bottom line: Until BTC decisively breaches $110K, expect chop. And remember: in traditional finance, this would be called ’market volatility.’ Here, we call it ’Tuesday.’

— Benny Johnson (@bennyjohnson) May 23, 2025

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.
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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.

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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.

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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.

Key Takeaways