Bitcoin Hits $111,980 ATH, But Warning Signs Point to Imminent Pullback

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Bitcoin Hits $111,980 ATH, But Warning Signs Point to Imminent...

Svetlana Petkova
26 May, 2025, 17:00
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Bitcoin Hits All-Time High Amid Surging Derivatives Activity — But Is a Pullback Imminent?

On Thursday, May 22, Bitcoin (BTC) surged to a new all-time high of $111,980 on Binance. Simultaneously, Open Interest (OI) in the derivatives market reached a record $74 billion, underscoring strong bullish conviction among traders.

However, a significant buildup of liquidation levels below the $100K mark suggests that a price retracement could be on the horizon, as markets tend to gravitate toward liquidity.

Key Indicators Show Waning Momentum

While Open Interest surged alongside price, recent data from Coinalyze revealed a flattening OI trend since the ATH was hit. The Funding Rate, once strongly positive, has returned to neutral, hinting at a cooling market.

Traders Should Brace for a Short-Term Pullback

According to a CryptoQuant Insights post by analyst Darkfost, spot demand is weakening, even as futures volume remains robust—signaling a market dominated by speculation rather than organic investor interest.

Key observations:

Spot volume dropped as BTC entered its price discovery phase.
The $94K–$96K zone, a prior resistance area, is now showing signs of buyer hesitation.
This divergence between spot and derivatives markets could expose Bitcoin to greater volatility and deeper corrections.

Range Formation Suggests Potential Reset

Ethereum Faces Key MVRV Warning: Could a Pullback Be Imminent?

The 1-day chart over the past six months outlines a potential range-bound structure (white box). This range, if confirmed, introduces two likely scenarios:

A continued uptrend, should demand reignite.
A reset toward $100K or even $93K, driven by liquidity targeting and investor caution.

The March retracement to $77.5K and the following rally led to short liquidations building up at:

$99.6K (already swept)
$108K (swept)
$113K (not yet reached)

With spot demand fading, a move beyond $113K may be postponed.

Liquidation Heatmap Points to $100K and $92K as Next Targets

The 3-month liquidation heatmap reveals significant liquidation clusters at $100K and $92K, marking them as potential price magnets in the short term.

Whether BTC holds above $106K will likely depend on: