Bitcoin’s price has been confined within a narrow range over the past three weeks, oscillating between a resistance level of $102,750 and a support level of $91,200. This stagnation follows a drop from its all-time high of $108,364 recorded on December 17. Analysts attribute this lack of movement to diminished activity from so-called “shark” wallets, which hold between 100 and 1,000 BTC. These entities had previously fueled a significant rally, but their buying activities have since ceased.
Compounding the stagnation is broader market uncertainty linked to global monetary conditions and upcoming political changes in the United States. Reduced liquidity on a global scale, as indicated by the Global M2 money supply, has discouraged investment in riskier assets like Bitcoin. Furthermore, the cryptocurrency is nestled between key price levels that reflect a balance of competing forces. On the downside, major buying interest exists between $92,000 to $94,800, while significant selling pressure persists from $94,980 to $99,680.
Technically, Bitcoin’s price recently dipped below its 50-day simple moving average but found support at the $92,000 level, a critical threshold since November 20. As Bitcoin continues to navigate this consolidation phase, the market remains a battleground between bullish sentiment and ongoing liquidity challenges.
