Bitcoin (BTC) neared $110,000 on news of the end of the US government shutdown and Donald Trump's proposed $2,000 tariff dividend.
However, BTC was rejected around $107,000 and failed to break the important psychological level of $110,000.
At this point, CryptoQuant analyst with the nickname XWIN Research examined the reasons why Bitcoin could not exceed $ 110,000.
He cited macro pressure as the first reason for not breaking $110,000, continuing regulatory uncertainty as the second reason, and increasing selling pressure from long-term investors (LTH) as the third reason.
According to the analyst, ongoing macro pressure is limiting Bitcoin's rally. While the Fed cut interest rates in October, Chairman Jerome Powell said in December that another cut wasn't guaranteed.
This reduced interest rate cut expectations and triggered sales in risky assets like BTC.
The analyst also cited continued regulatory uncertainty as a bullish headwind. While the Trump administration appears crypto-friendly with the GENIUS Act and pro-crypto appointments, state-level pressures and volatility concerns persist.
The analyst noted that while bullish catalysts are present, factors such as macro pressure, structural uncertainty, and market sentiment are preventing Bitcoin from breaking above $110,000.
Stronger ETF inflows, regulatory clarity, and reduced LTH sales will be key to the next rally, the analyst said, adding that the $107,000-$118,000 range is a key resistance zone in the short term.
*This is not investment advice.
