Important Points to Note:
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The price of Bitcoin briefly touched $110,000, however, weak demand on spot exchanges indicates limited further gains.
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Widespread Fear of Missing Out (FOMO) among retail investors combined with a nearly overbought Relative Strength Index (RSI) suggests a possible price pullback for BTC.
Since hitting a three-week peak of $110,300 on Wednesday, Bitcoin (BTC) has been forming a pattern of successively lower peaks and troughs on the hourly chart.
As the week draws to a close, the BTC price has struggled to overcome the previous high of $112,000.
Why is Bitcoin Failing to Surpass $112,000?
Bitcoin’s value has increased by 5% in the past two days, peaking at an intra-day high of $110,392 on Thursday, based on data from
Cointelegraph Markets Pro and TradingView.
Despite this growth, the inability to move beyond the prior high of $112,000 is currently due to a lack of buying pressure.
Bitcoin’s spot volume delta, which measures the net difference between purchase and sale volumes, shows that net spot purchases on
exchanges remain negative even as the BTC price attempts to break higher.
See Also: Bitcoin
Likely to Hit $116K in July Due to Favorable Macro Factors
This indicates a deficiency in momentum, potentially causing a retreat or stabilization if gains are primarily driven by derivatives
trading, absent support from the spot market.
“BTC is attempting a breakout, but where is the demand from the spot market?” stated Swissblock Technologies, a market data
provider, in a recent post on X, noting:
“Without substantial buyer interest, breakouts can only be sustained briefly. Buyers are
needed to maintain price increases.”
Looking forward, K33 Research highlights that spot trading volumes generally decrease from June
through October compared to the rest of the year, with July historically being one of the quietest months, accounting for just
6.1% of annual volume. This could hinder BTC’s efforts to establish new record highs in the coming weeks.
K33 Research added:
“While July 2025 presents potential factors that could move the market, such as Trump’s budget
bill, tariff decisions, and a crypto executive order deadline, historical trends suggest markets may continue to drift in periods
of low volume and volatility, despite the abundance of news.”
As previously reported by Cointelegraph, Bitcoin’s value requires new investment from spot buyers to escape its present
range and move into price discovery.
Possible Temporary Pause in BTC Growth
Bitcoin’s jump to $110,000 has triggered significant FOMO, with retail traders pushing for even greater price increases, according to
on-chain data provider Santiment.
“The crypto market has officially shifted from FUD (Fear, Uncertainty, and Doubt) to FOMO following Bitcoin’s rise to $109.8K,” the
firm stated in a post on X, on Thursday.
However, the current market sentiment, now in
“greed” at 73, frequently signals an upcoming contrary movement.
Historically, when retail traders display excessive optimism, markets tend to reverse or pause as more experienced investors take
advantage of overbought conditions.
When combined with high trading volumes and speculative bets, this greed-driven attitude can inflate prices temporarily, leading to a
price decline.
Bitcoin’s Relative Strength Index, or RSI,
shows almost overbought conditions in four of six timeframes. This suggests that the price is approaching its limit, hinting at a
potential short-term correction.
While Bitcoin is attempting to surpass $110,000, the current sense of excitement suggests a temporary pause or stabilization is
likely as the market “resets” excessive retail enthusiasm, possibly stabilizing before continuing its upward trend.
Santiment stated:
“Prices generally move in the opposite direction of retail traders, so a brief pause in growth
shouldn’t be surprising when greed is high.”
This article is for informational purposes only and should not be considered investment
advice. All investments involve risks, and readers should conduct their own due diligence before making any investment decisions.