Bitcoin (BTC) Failed to Hold Above $105,000 This Week Despite Strong Momentum Earlier in May

Bitcoin (BTC) failed to hold above $105,000 this week despite strong momentum earlier in May. After tapping $105706 on May 13

Bitcoin (BTC) failed to hold above $105,000 despite strong momentum earlier in May, data from several sources showed, as the cryptocurrency retraced sharply from the key resistance.

After tapping $105,706 on May 13, BTC slid to trade around $103,200 on May 16, marking a rejection from the critical psychological level. The rejection came after the coin posted two strong weeks of gains, largely driven by short squeezes and improved risk sentiment. However, the rally appears to be losing steam just below another critical level.

Broader crypto market trends indicated this pause in bullish momentum. Notably, Ethereum (ETH) traded around $2,552, while Solana (SOL) hovered near $169. BNB slipped to $652, and XRP fell to $2.47. Most large-cap assets showed mild declines, suggesting a broader shift away from bullish trends.

This downturn came amid macroeconomic pressure. Traders were now awaiting U.S. inflation data, which is due later this week and could reset expectations for Federal Reserve rate cuts. While a temporary easing of U.S.–China tariffs last week supported risk assets, the relief proved short-lived as equities and crypto failed to sustain upward momentum.

BTC’s inability to hold $105,000, coupled with fading macro tailwinds, painted a cautious picture in the short term. Momentum traders now faced a key question—whether BTC could reclaim its highs or if the top had already been made.

Bitcoin price could face trouble ahead as analysts highlighted rising downside risk despite its breakout above $100,000. The predictions were based on both on-chain and technical observations.

One trader, who posts on Tradingview, created a chart that showed a clear Elliott Wave structure, pointed to a final push toward $122,000 before a sharp correction to $60,000 in 2026. The move would come inside a rising wedge, with Bitcoin currently in Wave 3 of the final leg.

Another analyst, Amr Taha from CryptoQuant, shared an observation regarding Binance liquidation data. Bitcoin registered two liquidation spikes above $300 million within seven days. Both were short liquidations, with the latest one occurring near $105,000.

“These rallies were not organic. They were forced buy-ins triggered by margin calls on short positions. When crypto exchanges auto-close shorts, they generate aggressive upside moves, but the fuel is finite. Price briefly touched $105K before retracing, confirming that reactive buying, not spot demand, drove the move.”

The second signal came from on-chain activity, specifically from wallets holding 100 to 1,000 BTC. On May 13, this cohort transitioned from accumulation to distribution, selling more than 40,000 BTC. The dump marked their first net negative trend since April 2024. This group tends to act early, often distributing into strength before broader sentiment shifts.

“Their decision to exit as the Bitcoin price rallied suggests tactical selling into retail-driven euphoria. This cohort is famously known for accurately timing cycle mid-tops and late-stage rallies.”

The third signal was technical. A weekly fair value gap between $73,624 and $74,420 remained unfilled. This inefficiency formed during a vertical move in early April and had not been retested. Such gaps usually attracted price later in the cycle, especially if the trend exhausted. With BTC over 28% above the zone, a return would imply a deep correction, but it remained a relevant magnet.

Together, these signals indicated distribution, not strength. Without fresh inflows or a decisive breakout above $105K, the next major move could favor downside reversion.

The BTC/USD pair had formed an interesting technical setup called the ascending triangle. A horizontal resistance line at $90,000 and rising trendline support helped characterize the pattern. This structure suggested that buyers were gradually gaining control, compressing the price against a defined ceiling.

To determine the price target for this pattern, traders usually measured the vertical height between the base of the triangle (around $48,000) and the horizontal resistance. Then, they would project the distance upward from the breakout point.

According to this method of calculation, the pattern’s theoretical price target could be reached after a rally of nearly 39%. In other words, Bitcoin price could continue to rise to hit the pattern’s price target of around $142,450.

However, confirmation of the pattern remained absent. BTC would need to post a clean breakout above the horizontal resistance to validate this setup. Until then, the risk of rejection persisted. A failed breakout attempt could push BTC back toward the ascending trendline support