Bitcoin Price Surges 5% on Trump Tariff Delay News

Bitcoin (BTC) price experienced a mild recovery over the weekend, but gains above $110,000 were capped by selling pressure. Data from Glassnode indicates that there is a "net distribution" (selling) from the cohort holding more than ten thousand Bitcoin, while cohorts below this level have continued to accumulate. This suggests a mixed sentiment among Bitcoin holders, with larger holders selling while smaller holders are buying.

The spot and futures cumulative volume delta at Binance exchange reflect persistent selling when BTC price approaches the $110,000 level. This indicates that there is significant resistance at this price point, which could be due to profit-taking by investors or institutional selling.

The Sunday (May 25) futures-market driven surge back to $110,000 followed the announcement by US President Donald Trump that EU Commission President Ursula von der Leyen had contacted him, suggesting a roughly one-month extension to delay the 50% EU tariffs which were slated to start on June 1. This news likely boosted market sentiment, leading to a temporary price increase.

Compared to last week’s data, funding rates have cooled, especially at Hyperliquid, where trader James Wynn alternated between a $1.2 billion 40x long position and a $500 million leveraged short position, both of which are now closed. This indicates a reduction in speculative trading and a more cautious approach by traders.

In terms of taking out the resistance seen at $110,000, flows could possibly remain suppressed as US markets are closed for the Memorial Day holiday. This means that the daily open market demand seen by the spot Bitcoin ETFs, which accounted for $8.36 billion in BTC purchasing since the start of April, are paused for the day. This could lead to a temporary lull in price movements until markets reopen.

Liquidation heatmap data from crypto analytics platform TheKingfisher shows margin traders are overweight on the long side, with the potential for liquidations starting below $109,000 to $107,000. This suggests that if the price of Bitcoin falls below this range, there could be a wave of forced selling as margin traders are liquidated.

On the other hand, data from CoinGlass hints that a BTC price push through the $110,000 resistance could trigger a short liquidation that could quickly result in a rally to $114,000. This indicates that there is significant short selling at the $110,000 level, and if the price breaks through this resistance, it could lead to a short squeeze and a rapid price increase.

In terms of the purely technical-focused price outlook for the week, traders are likely watching today’s price action to see if any futures and spot CEX market upside is followed by bullish flow into the March 27 equities and TradFi crypto markets open. This suggests that traders are closely monitoring market movements and looking for signs of continued bullish momentum.

As things currently stand, a block of asks can be seen at $114,000 and $119,000 at Coinbase Pro, while bids start at $104,000 and intensify as the price draws closer to $102,000-$100,000. This indicates that there is significant resistance at the $114,000 and $119,000 levels, while there is strong support at the $104,000 level and below.