Bitcoin Price Surges 9% to $111,150, Faces Resistance at $112,000

Bitcoin's price has been on a remarkable journey, surging from below $102,000 to hover near $111,150. This ascent has been marked by a powerful rally that pushed through multiple trendline resistances and historical supply zones. However, the momentum seems to be waning as the price approaches the key resistance ceiling at $112,000. The recent breakout on May 20 was significant, but current indicators suggest that the bulls may face a stiff test in maintaining this momentum.

The broader Bitcoin price action remains bullish, but the short-term structure points to potential consolidation or even a short-term pullback. Key support zones are identified between $109,200 and $108,300. If the price fails to hold these levels, it could trigger a correction toward the $108,800 zone before attempting another leg higher. The recent price surge has created an ascending wedge structure on the 30-minute chart, with a visible squeeze near the $112,000 upper bound. This zone has capped price progress across multiple attempts since May 21, forming short wicks and signs of rejection.

On the 4-hour chart, the Bitcoin price update reveals a strong cluster of EMAs—20, 50, 100, and 200—all trending upward, confirming the bullish medium-term structure. However, momentum on the 30-minute timeframe is starting to fade. The Relative Strength Index (RSI) has dipped to 48.47 from overbought conditions earlier, while MACD has crossed bearish, with the histogram beginning to print red bars. This weakening momentum, paired with price stagnation near resistance, suggests the asset may consolidate before the next move.

Bulls have attempted to push the Bitcoin price past the $112,000 resistance several times but have failed to hold those levels for long. The rejection candles formed near this range coincide with the top band of the Bollinger indicator on the 4-hour chart, signaling that Bitcoin price volatility has reached an elevated level. Support-wise, the $109,200 to $108,300 region is now critical. This zone includes the 20 and 50 EMA confluence, which acted as a springboard for the recent upside. If the Bitcoin price breaks below $108,000, the next key downside support sits at $106,300, with further protection at $103,600.

The Stochastic RSI and Chande Momentum Oscillator on lower timeframes are also turning bearish, with the Stoch RSI crossing into the oversold zone while ChandeMO slips into negative territory. These signals align with the potential of a short-term pullback or range-bound movement. The question on many traders’ minds is why the Bitcoin price is going down today after such a strong breakout. The answer lies in technical exhaustion. After a vertical run from $102,000 to $112,000, BTC is showing signs of overextension. The RSI divergence and MACD weakening hint at momentum fading. Additionally, buyers may be taking profit near round psychological levels like $112,000, especially with resistance visible on both intraday and daily timeframes.

Despite short-term exhaustion, the mid-term trend for BTC remains intact. As long as the Bitcoin price stays above the $106,000 zone, the bias leans bullish. If bulls manage to breach and sustain above the $112,000 barrier, the next target sits near $114,000–$114,500, followed by $118,000. On the flip side, failure to hold $109,000 could result in a retracement to the $106,000–$103,000 demand area. These levels are crucial for preserving bullish structure going into the final week of May. The Bitcoin price update for May 24 reflects a cautious pause after an impressive breakout. While the bulls retain control in the broader trend, short-term pressures are mounting as BTC hovers near a key inflection point. Traders should closely watch the $109,200 support and $112,000 resistance to determine whether the current structure resolves in favor of continuation or correction.