Bitcoin Price Forecast: Can Bulls Reclaim $110K or Will $104K Be Next?

Why Is Bitcoin Price Falling Today? Momentum Indicators Flash Red

Bitcoin Price Forecast – Bitcoin’s price is currently consolidating near $108,800, following a failed attempt to extend its breakout above $110,400. The broader Bitcoin price action has remained range-bound since the May 21 peak near $111,889, with technical indicators now signaling caution. Despite a strong macro backdrop, investors are questioning why Bitcoin’s price is experiencing downward pressure today.

Technical Indicators Suggest Short-Term Weakness

On the 4-hour chart, Bitcoin’s price is forming a tightening structure between $108,200 and $110,400. The recent drop from the upper bound has pushed BTC back below the 20 and 50 EMA lines ($109,144 and $108,244, respectively), while the price now flirts with Bollinger Band midlines and support clusters near $108,500.

From a pattern perspective, the structure resembles a rising wedge breakdown or a rounded top, especially after repeated failures to breach the $110,400–$110,800 supply zone. Volatility, as indicated by the Bollinger Bands on both 30-minute and 4-hour charts, has compressed considerably—suggesting a high-probability breakout or breakdown in the next 24–48 hours.

Bearish Divergences Trigger Weakness

The primary reason for Bitcoin’s downward movement today lies in the clear divergence across momentum indicators. On the 30-minute chart, multiple bearish divergences were observed on the RSI as price tried to push above $110K—each push was weaker than the last. Additionally, MACD lines on the same timeframe have crossed below the signal line with a bearish histogram expansion, confirming the waning bullish strength. The Ichimoku Cloud shows price breaking below the cloud support near $109,000 on the 30-minute chart, with the Tenkan-sen and Kijun-sen lines now crossing bearishly.

The Chikou span also trails behind price, adding to the bearish short-term outlook. Stoch RSI is also flashing overbought rejections above 85, while the Bitcoin price update shows Chande Momentum Oscillator turning down after peaking near 25. This cluster of weakening signals reflects exhaustion in upside momentum after last week’s aggressive breakout.

Key Support Zones to Watch

The immediate focus is on $108,200 as the nearest make-or-break zone. This level has acted as soft support since May 26 and aligns with the bottom of the current wedge structure. If price breaks decisively below this level, further downside toward $106,800 and $104,000 becomes likely, based on previous supply-demand flips and Fibonacci confluences.

On the daily chart, BTC is still holding above the 100 and 200 EMA bands at $106,082 and $101,878, respectively, which should offer mid-term support if volatility expands sharply downward. However, a failure to reclaim $109,600–$110,000 by May 29 could accelerate the correction.

Bitcoin Price Forecast for May 29

As of now, Bitcoin’s price volatility is near a short-term inflection point. The price has failed to sustain higher highs since May 23, despite multiple bullish triggers. Unless bulls reclaim $109,600 with strength and volume, the bias remains tilted to the downside with $106,800 and $104,000 in focus.

On the flip side, a successful flip of $110,400 could trigger a renewed rally toward $111,800 and potentially $113,200 based on wedge breakout targets. However, this would require a breakout from the current descending channel visible on the 30-minute chart.

Traders should monitor MACD crossovers, Bollinger Band expansion, and the Ichimoku cloud edge near $109,200 for early cues into the move.

Bitcoin is consolidating near $108,800 as bearish technical signals and weakening momentum raise the risk of a potential breakdown below key support levels.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.