Bitcoin (BTC) has been experiencing a period of consolidation, with its price hovering within a narrow range of $101,500 to $104,000 over the past seven days. The key resistance level of $105,000 has prevented a rally to new all-time highs. Data from Cointelegraph Markets Pro and Bitstamp shows that Bitcoin has struggled to break above this resistance level, with two failed attempts to do so. This has led to a slightly bearish sentiment among traders, as indicated by market intelligence firm Santiment.

Despite the current consolidation phase, historical data suggests that a sudden bullish move should not be ruled out. Retail traders are becoming impatient, which has historically been a bullish sign for prices. Bitcoin has managed to hold the $100,000 support level for over a week and hit a 14-week high of $105,700 on May 12. However, large-volume trading entities on exchange order books have been preventing a sustained breakout to new highs by stacking ask liquidity above the spot price, creating a price range between $105,000 and $110,000.

According to trading resource Material Indicators, a serious catalyst may be needed to see a sustainable breakout to all-time high territory. The firm highlighted the importance of a support test at the $100,000 level before a significant move upwards. On the downside, the $98,000-$100,000 range is seen as a key level to watch for potential support tests.

Trader Daan Crypto Trades emphasized the significance of the $93,000 level as the starting point of the recent move for Bitcoin. He noted that the lack of large liquidity clusters in the current trading range could lead to short squeezes and bull traps. Material Indicators also highlighted the bullish cross of the 50-day and 100-day simple moving averages, indicating strong upward momentum for the macro trend.

Michael van de Poppe, founder of MN Capital, identified $98,000 as a crucial area for Bitcoin to hold in order to continue its upward trajectory. The overall sentiment in the market remains cautious, with traders closely monitoring key support and resistance levels for potential breakout opportunities.

In conclusion, while Bitcoin's price remains in a consolidation phase with resistance at $105,000, historical data and technical indicators suggest that a sudden bullish move cannot be discounted. Traders are advised to exercise caution and conduct their own research before making any investment decisions.

Source: https://cointelegraph.com/news/here-is-why-bitcoin-price-is-stuck-below-105-k?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound