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Bitcoin Faces Pivotal Test at $110K After Peaking at $111.9K: Rally Pause or Start of a Pullback?

This week saw Bitcoin’s stunning surge carry on, with the cryptocurrency for a moment nudging up to—and almost touching—$111,900 on several of the major exchanges before, uh, it kind of didn’t and came back down to earth, looking somewhat dazed and triggering what some are calling a fresh sell signal. Overall, the digital asset still seems to be in a bullish uptrend, but there are now some signs that it’s getting tired. Traders are closely watching key support levels to see whether this is a standard sort of retest or the beginning of a larger correction. The market finds itself in a critical situation, where pricing, liquidation, and investor sentiment are all doing their part to create an increasingly tense short-term outlook. Bitcoin Rally Pauses After $5K Surge: A Sell Signal Emerges The latest leg upward for Bitcoin started at about $106,300, where a buy alert lighted a fire under the rally that tacked on more than $5,000 to its price. That uptrend finished in a surge to $111,950, making for a new local high. But not long after reaching that point did a sell alert get triggered, suggesting that the buyers may have been running on fumes and that the rally was losing upward momentum. As this is being penned, Bitcoin trades at about $110,402 on the BTC/USDT pair offered by Binance. The SuperTrend indicator is still green. However, it now sits at a make-or-break level that could swing in the opposite direction if downward pressure on the price continues. On May 22 (ET), spot Bitcoin ETFs saw a total net inflow of $935 million, marking seven consecutive days of net inflows. Spot Ethereum ETFs recorded a total net inflow of $111 million, with five consecutive days of net inflows. https://t.co/ueXcZjub6m — Wu Blockchain (@WuBlockchain) May 23, 2025 This hesitation comes in the face of heightened activity from sellers, who are starting to probe the recent structural bullishness. Despite the long-term uptrend being quite intact, the rejection at $111.9K signals that the bulls may be contending with either profit-taking from previous longs or some kind of institutional rebalancing. Liquidation Zones Signal Key Pressure Points Analyzing liquidation data also provides better insight into how the market might be moving. When looking at the resistance side, there’s a very clear short liquidation zone from about $111,800 to $112,300. Not only is this area a little thin in terms of order book depth, but it’s also effectively the last line of defense for all those fortunate enough to have opened short positions recently. If the buyers truly are stepping up, then a move through this zone could very well trigger a short squeeze and push Bitcoin beyond the $112,500 mark, which many analysts see as a potential breakout level. Support areas are now taking center stage. The next long liquidation cluster is at about $110,000 to $109,200. If this area holds and doesn’t get pushed through to the downside, it might very well set the stage for a next bullish push and reinforce the kind of confidence you need for breakouts and pushes to the next higher high. Beneath that, the territory between $108,000 and $106,300 marks the original base of the current upswing. It also serves as a supply zone, where above it, buyers step in with more confidence. If prices tumble below this range, it’s highly probable that we’d see a serious trend breakdown, with this area serving as a tipping point—and not a very good one at that, given how close it is to current price levels. Bitcoin just tapped $111.9K before stalling, and a fresh sell signal has now emerged at the top. Is this a standard retest of support or the first crack in bullish momentum? SuperTrend remains green, but sellers are probing. Full liquidation and trend breakdown below … https://t.co/MpjTUzsPcR pic.twitter.com/JnEFRyb7BU — IT Tech (@IT_Tech_PL) May 23, 2025 The $109,200 level could see serious volume profile action and market reaction. A strong bounce there could reset bullish sentiment in the crypto market. But a breakdown might induce overleverage long liquidations to cascade downward. Sentiment Still Positive, But Cracks Are Forming Even in the face of short-term ambiguity, the general outlook stays relatively positive. On May 22, spot Bitcoin ETFs took in a net of $935 million—an amount that marked the seventh straight day of positive inflows. That brings the total net inflow for Bitcoin ETFs in 2023 to more than $1.5 billion. Notably, this institutional demand has largely sidestepped the kind of pronounced sell-offs that have characterized previous bear markets. Yet, how markets feel about an asset can change in the blink of an eye. The recent rejection of Bitcoin’s price at $111,900 may turn out to be just a small, local dip on the way up, but some analysts are interpreting it as a sign of market exhaustion, at least in the short term. They’re saying that if the $110K level can’t hold as a support level, then the next likely prices in play for a retracement are $108,000 or $106,000—both of which got significant play from bulls late last year and early this year. To sum up, Bitcoin’s uptrend remains in place, but the market is entering a precarious phase. As long as it maintains a price higher than $110,000, a retest of $112,000 and perhaps even loftier levels remain within striking distance. But if sellers can force the price down to $109,000 or below, a more significant correction seems likely to follow. Like any otherwise in volatile markets, everything remains concentrated on volume, liquidation activity, and structural support to divine the next move in Bitcoin’s by-now-familiar saga. Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services. Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news ! AMB Crypto

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BNB Chain Shows Resilience Amid Price Pressure, Institutional Optimism

This week, the price of BNB has been performing disappointingly, but the ecosystem is showing strong fundamentals and moving forward with development. BNB Chain has encountered setbacks but is making major progress, painting a complex, but overall optimistic, picture for BNB Chain—a principal Layer 1 blockchain in the market. Recent developments in decentralized finance (DeFi), cross-border payments, and institutional reinforcement mean that BNB Chain has advanced — seems to be advancing — even if that elevation hasn’t yet shown itself in the token’s price and market capitalization. BNB Price Dips Slightly as Bitcoin Dominance Weighs on Altcoins This week, the total market cap of the BNB Chain ecosystem saw a slight dip, falling 1.4% to just over $7 billion. BNB itself shed some weight, falling to just under $280 and holding a market valuation of about $91.8 billion as of Friday afternoon. This week, the decline of the BNB Chain ecosystem is a direct effect of the rising tide earlier in the week of Bitcoin. Short-term weaknesses notwithstanding, BNB Chain’s monthly performance still reveals a very healthy 15.7% gain that shows a longer-term uptrend. “Greed” is presently the market sentiment for Bitcoin, indicating that investors are generally optimistic about the leading cryptocurrency. Trading across the altcoin market has remained muted in recent days, with BNB and other altcoins seeing paltry volumes, as the market patiently awaits more significant Bitcoin price action. BNB price pullbacks look to be not so much about weakness in the chain but more about macro trends. All eyes are on Bitcoin, and as it goes, many altcoins are barely hanging on by a thread. This seems to be the case with BNB, which has actually flipped bullish on the BTC pair, but then again, that’s the kind of dynamic that too many altcoins are struggling with these days. DeFi Thrives: PancakeSwap V3 and Ecosystem Metrics Surge The price of BNB can be unstable, yet the DeFi infrastructure based on it seems to be thriving. This week, the leading decentralized exchange on BNB Chain, PancakeSwap, gave us a prominent metric to look at. It had a trading volume that surged by an unbelievable 152% from the week prior. What this looks at kind of at a top layer is: this is one of the major platforms on BNB Chain. It’s an interface through which a lot of folks are accessing the chain’s DeFi infrastructure. So to see it doing 152% better, that is quite an eyepopper. Increased activity on decentralized exchanges (DEXs) on the BNB Chain is offsetting a minor decrease in the total value locked (TVL) in the network’s DeFi protocols. The DEX week-over-week activity metric is up 81%, which is substantial and suggests that user preference is shifting to DEXs. In the DeFi layer of the BNB Chain, even with this small downturn of 2.4%, the total value locked (TVL) today is still the third-largest amount among all Layer 1 blockchains. Week in BNB Chain: Weak Price Performance, Fundamental Strength. PancakeSwap V3 volume surges 152%! Wello launches global PayFi app! Standard Chartered forecasts BNB at $1,275 by year-end! Let`s examine BNB Chain`s mixed signals this week 1/6 pic.twitter.com/Pf7JBFNTaR — CoinMarketCap (@CoinMarketCap) May 22, 2025 The Platform Update The BNB Chain’s transaction costs are very low, and that’s a big part of the chain’s appeal. Right now, the average transaction cost is just $0.06. That’s about as low as it gets. And for those who want to do business on the BNB Chain, that’s a very nice price. Wello Launch and Institutional Confidence Paint a Bright Future Apart from DeFi, BNB Chain witnessed a notable development in the payments sector with the worldwide unveiling of Wello PayFi. The platform allows for rapid, inexpensive cross-border payments and plays nicely with Apple Pay, Visa, and more than 120 fiat onramps. Wello merges the decentralized security of blockchain with the user-friendly centralization necessary for mass adoption. This makes it a potentially huge player in the global remittance market. This product launch is the real-world adoption step for BNB Chain; it shows that BNB Chain can do what we really want — impact the world with user-facing financial applications. And it isn’t just a narrative; it shows that BNB Chain isn’t just a DeFi playground. It’s positioning itself as a viable full-stack blockchain ecosystem. Possibly the most encouraging aspect is the long-term look from institutions. Analysts at Standard Chartered are giving a very bullish forecast for BNB. They see it reaching $1,275 by the end of 2025, which would be a gain of more than 300% from current levels. Their report cites ongoing ecosystem growth and rising adoption as the main reasons they are confident in BNB’s future. Conclusion This week saw a slight drop in price, but the BNB Chain remains durable and full of potential. Surge in DEX Activity A group of 40 decentralized exchanges launched a global app on the same day. Bullish Institutional Sentiment Last week, news broke that the BNB Chain raised $3 billion in fresh capital from more than 100 institutional investors. Price Stability Stable growth in the Bitcoin dominance number suggests that BNB has a good chance of recapturing the kind of sustained price growth that rewards dollar-cost-averaging investors. Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services. Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news ! AMB Crypto