Bitcoin bulls start Memorial Day blitz on $110K — Will spot follow when US markets open?

Bitcoin’s recent price action reveals a complex interplay of factors influencing its trajectory. While a slight recovery occurred over the weekend, pushing Bitcoin above $110,000, selling pressure has capped further gains. Data from Glassnode indicates that large holders (those with over 10,000 BTC) are net sellers, a trend contrasting with accumulation among smaller holders. This divergence highlights differing investment strategies across market participants.

Binance exchange data shows persistent selling pressure as BTC approaches $110,000, evident in both spot and futures markets. The Sunday surge to $110,000, fueled by futures market activity, followed President Trump’s announcement regarding a potential delay of EU tariffs. However, funding rates have cooled, particularly at Hyperliquid, where significant leveraged positions have been closed.

The Memorial Day holiday closure of US markets could suppress trading volume, impacting the daily demand seen from Bitcoin ETFs, which have purchased $8.36 billion in BTC since April. This pause in ETF activity may impact short-term price movements.

Analysis from TheKingfisher reveals margin traders are heavily long, increasing the risk of liquidations if the price drops below $109,000-$107,000. Conversely, CoinGlass data suggests a break above $110,000 could trigger short liquidations, potentially driving a rally to $114,000.

Technically, traders are closely watching today’s price action to gauge whether any CEX market upside translates into broader bullish momentum across equities and TradFi markets. Significant ask orders are visible at $114,000 and $119,000 on Coinbase Pro, while bids are concentrated around $102,000-$100,000. This order book imbalance underscores the uncertainty surrounding Bitcoin’s short-term price direction.

The current situation presents a mixed picture. While bullish signals exist, potential for significant liquidations adds considerable risk. Investors should carefully consider this dynamic environment before making any investment decisions. Remember, all trading involves risk, and conducting thorough research is crucial.