Bitcoin consolidated near $108,929 on Tuesday morning as technical indicators revealed growing divergence between price action and underlying momentum, according to TradingView data published at 05:58 UTC.
The world’s largest cryptocurrency faced pressure after hitting a record high of $112,110 on May 23, subsequently declining from $110,074.93 on Monday.
CoinDesk technical analysis identified critical weakness in Bitcoin’s momentum structure. The 30-day rate of change indicator formed a bearish divergence pattern, showing declining momentum despite recent price gains.
The daily MACD histogram flipped negative, signaling a bearish shift in trend strength that could pressure prices toward the $100,000 psychological support level.
Bitcoin futures traded at $110,180 according to tradeCompass analysis, maintaining a bullish bias above the $108,800 threshold. However, analysts warned that current levels present stretched conditions for new long positions.
The cryptocurrency remained within its ascending bullish channel but faced increased risk of breaking lower. Institutional demand provided fundamental support through record Bitcoin ETF inflows.
US spot Bitcoin ETFs recorded their largest daily inflow since April 29, 2024, absorbing 7,869 BTC on Friday. This institutional buying pressure represented approximately $850 million in fresh capital, with the 7-day moving average trending upward around 1,100 BTC daily since May 20.
XRP demonstrated resilience among major altcoins, trading at $2.3449 with a 1.19% gain over 24 hours. The Chicago Mercantile Exchange launched XRP futures on May 19, boosting institutional legitimacy alongside Volatility Shares’ introduction of an XRP futures ETF.
Regulatory clarity following Ripple’s SEC settlement resolution supported renewed investor confidence. Technical analysis of Bitcoin’s daily chart revealed mixed signals across key indicators.
The 50-day and 200-day simple moving averages maintained their golden cross formation, supporting the broader bullish outlook. However, shorter-term momentum oscillators displayed concerning weakness that could trigger profit-taking among leveraged positions.
Market structure showed Bitcoin testing the lower boundary of its bullish ascending channel. Volume patterns remained subdued during the Memorial Day holiday, with reduced institutional participation creating opportunities for increased volatility.
The cryptocurrency’s ability to hold above $108,500 would determine whether bulls could maintain control. Bitcoin’s price action reflected broader macroeconomic factors, including delayed semiconductor tariffs that reduced trade war concerns.
The Trump administration’s decision to postpone 50% tariffs on EU imports until July 9 encouraged capital flows into risk assets. Growing regulatory clarity and favorable institutional adoption trends continued supporting long-term cryptocurrency demand.