- Bitcoin dropped 2.7% to $107.7K after U.S. tariff threats triggered resistance near the $110K–$112K range.
- Bollinger Bands and rising A/D line show a bullish pattern, but smaller candles hint at profit taking.
- Exchange outflows above $300M on key May dates suggest whales are holding, reducing selling pressure.
Bitcoin’s momentum has slowed following renewed U.S.-EU trade tensions. President Donald Trump’s recent remarks regarding increased tariffs on European Union imports have disrupted global markets.
The proposed 50% tariff on all EU goods and a 25% tariff on Apple products have drawn major attention. Investors responded swiftly as Bitcoin dropped after reaching a new all-time high near $112,000. At press time on May 24, Bitcoin was down by 2.70%, trading at $107,774.66.
Tariff Concerns Trigger Short-Term Resistance
The sudden price correction coincides with the emergence of upper wicks in recent daily candles. These wicks have appeared consistently since Bitcoin first approached the $110,000–$112,000 range.
Analysts attribute this behavior to growing resistance within this zone. The tariff concerns only added pressure to an already strained technical area. Despite the correction, Bitcoin continues to trade well above the middle Bollinger Band at $103,970.70.
Bollinger Bands data suggests Bitcoin remains in a bullish position, trading near the upper band at $112,008.97. However, its proximity to this band may also indicate overbought conditions. Meanwhile, volume is steady at 80 BTC, showing consistent activity.
Uptrend Holds, But Resistance Nears
Bitcoin has maintained a strong uptrend since early April 2025, marked by consistent higher highs and higher lows. However, this trend now faces a critical test. The most recent bullish candles show reduced sizes. These formations hint at profit taking as price nears the $112,000 high.
The Accumulation/Distribution (A/D) line continues to climb, reaching 173.35K. This shows sustained buying pressure since mid March and supports broader bullish behavior. Any sudden reversal in volume or sentiment could reverse this pattern quickly.
Exchange Outflows Support Positive Bias
Recent netflow data from Bitcoin spot exchanges shows consistent negative values throughout May. According to Coinglass, May 10, May 15, and May 20 each saw outflows exceeding $300 million.
This behavior typically aligns with reduced selling pressure, as investors move funds off exchanges. Although outflows have slightly decreased in recent days, the net trend remains negative. This suggests that whales and institutions are holding rather than distributing.
For May 25, Bitcoin may reach $113,000 in a bullish scenario or drop toward $102,000 if bearish pressure builds. Bitcoin’s price in the short term depends on multiple elements. Trade-related tensions, technical resistance, and exchange netflows all influence short-term outcomes.
