Bitcoin Technical Analysis: Market Trends on May 31, 2025

Technical analysis of Bitcoin on May 31, 2025, exploring key support/resistance levels and indicators.

On May 31, 2025, Bitcoin is at a critical price juncture, with technical analysis indicating a mildly bullish trend but with potential for a short-term correction. Recently, Bitcoin surpassed the $108,000 level and even spiked above $110,000, but faced strong resistance at around $110,750. This resistance zone, driven by heavy selling pressure, has halted further upward momentum. In the hourly timeframe, the MACD indicator shows declining momentum in the bullish zone, suggesting temporary weakness among buyers. Additionally, the hourly Relative Strength Index (RSI) has dropped below 50, indicating relative seller dominance in the short term. However, in the daily timeframe, the 20-day Exponential Moving Average (EMA) maintains an upward slope, and the RSI remains in positive territory, supporting a bullish outlook in the longer term. Key resistance levels are currently at $110,750 and $113,000. A breakout above these levels could push Bitcoin toward $120,000. On the downside, critical support levels are at $108,500, $107,500, and $105,000. A drop below $105,000 could trigger a deeper correction toward $100,000. From a price pattern perspective, Bitcoin is forming an ascending triangle in the four-hour timeframe, typically considered a bullish pattern. However, a breakdown below this pattern could lead to a price correction. The Ichimoku Cloud indicates that the price is above the cloud, a bullish signal, but the cloud’s thinness suggests limited trend strength. Fundamentally, increased inflows into Bitcoin ETFs and reduced economic and geopolitical concerns support the bullish trend. However, traders should monitor macroeconomic developments, such as Federal Reserve policies. Overall, Bitcoin may experience short-term volatility, but the long-term outlook remains bullish.