Bitcoin Price Drops 1.5% as Momentum Indicators Signal Weakness

Bitcoin's price has been consolidating near $108,800 after failing to extend its breakout above $110,400. The broader price action has remained range-bound since the May 21 peak near $111,889, with technical indicators signaling caution. Despite a strong macro backdrop, the daily trend remains positive, but lower timeframes show weakness, raising questions about why Bitcoin's price is going down today.

On the 4-hour chart, Bitcoin's price is in a tightening structure between $108,200 and $110,400. The recent drop from the upper bound has pushed BTC below the 20 and 50 EMA lines, with the price now near Bollinger Band midlines and support clusters around $108,500. The structure resembles a rising wedge breakdown or a rounded top, especially after repeated failures to breach the $110,400–$110,800 supply zone. Volatility, as indicated by the Bollinger Bands, has compressed considerably, suggesting a high-probability breakout or breakdown in the next 24–48 hours.

The main reason for Bitcoin's price decline today is the clear divergence across momentum indicators. On the 30-minute chart, multiple bearish divergences were observed on the RSI as the price tried to push above $110K—each push was weaker than the last. Additionally, MACD lines on the same timeframe have crossed below the signal line with a bearish histogram expansion, confirming the waning bullish strength. The Ichimoku Cloud shows the price breaking below the cloud support near $109,000, with the Tenkan-sen and Kijun-sen lines now crossing bearishly. The Chikou span also trails behind the price, adding to the bearish short-term outlook. Stoch RSI is flashing overbought rejections above 85, while the Chande Momentum Oscillator is turning down after peaking near 25. This cluster of weakening signals reflects exhaustion in upside momentum after last week’s aggressive breakout.

The immediate Bitcoin price update puts the spotlight on $108,200 as the nearest make-or-break zone. This level has acted as soft support since May 26 and aligns with the bottom of the current wedge structure. If the price breaks decisively below this level, further downside toward $106,800 and $104,000 becomes likely, based on previous supply-demand flips and Fibonacci confluences. On the daily chart, BTC is still holding above the 100 and 200 EMA bands, which should offer mid-term support if volatility expands sharply downward. However, a failure to reclaim $109,600–$110,000 by May 29 could accelerate the correction.

As of now, Bitcoin's price volatility is near a short-term inflection point. The price has failed to sustain higher highs since May 23, despite multiple bullish triggers. Unless bulls reclaim $109,600 with strength and volume, the bias remains tilted to the downside with $106,800 and $104,000 in focus. On the flip side, a successful flip of $110,400 could trigger a renewed rally toward $111,800 and potentially $113,200 based on wedge breakout targets. However, this would require a breakout from the current descending channel visible on the 30-minute chart. The RSI Divergence Indicator continues to show pressure building for a directional move. Traders should monitor MACD crossovers, Bollinger Band expansion, and the Ichimoku cloud edge near $109,200 for early cues into the move.

Bitcoin's price today is hovering at a pivotal zone, with bulls fighting to keep the structure intact above $108,200. However, momentum indicators are weakening, and multiple rejection wicks near $110,400 suggest short-term exhaustion. Unless buyers step in soon with conviction, Bitcoin's price action may tilt into a sharper correction before attempting a new leg higher.