Bitcoin Fails to Break $105,000 Resistance, Traders Cautious

Bitcoin's price has been oscillating within a narrow range, unable to surpass the $105,000 resistance level. Over the past week, the cryptocurrency has been consolidating between $101,500 and $105,000, with the latter acting as a significant barrier to further gains. This consolidation follows two unsuccessful attempts to break above the $105,000 mark, leading to a period of sideways movement.
Market intelligence firm Santiment noted that the failure to surpass $105,000 has led to a slight shift in trader sentiment, with many becoming slightly bearish. However, historical data suggests that such periods of increased fear and impatience among retail traders often precede bullish price movements. This indicates that despite the current consolidation, there is potential for a sudden upward surge in Bitcoin's price.
One of the key factors contributing to Bitcoin's inability to break through the $105,000 resistance is the presence of large blocks of ask liquidity stacked above the spot price on exchange order books. This liquidity, which sits between $105,000 and $110,000, acts as a barrier that prevents the price from rising further. According to trading resource Material Indicators, without a significant catalyst, a sustainable breakout to new all-time highs is unlikely until Bitcoin has a legitimate support test at $100,000.
Despite the current challenges, Bitcoin has managed to sustain $100,000 as support for over a week, reaching 14-week highs of $105,700 on May 12. However, the lack of a serious catalyst and the presence of large liquidity clusters above the spot price have prevented further gains. Traders are advised to be prepared for a support test in the $98,000-$100,000 range, while also being cautious of short squeezes and bull traps until that happens.
Popular trader Daan Crypto Trades highlighted the importance of the $93,000 level, which marked the start of the recent move. He noted that Bitcoin is currently trading far away from any large liquidity clusters, and that the main levels to watch are local highs above $106,000 and below $93,000. Material Indicators also paid attention to the 50-day and 100-day simple moving averages, which formed a bullish cross, indicating strong upward momentum for the macro trend.
For MN Capital founder Michael van
Poppe, holding the $98,000 level is crucial for ensuring continuation upward. He emphasized the importance of this support level in maintaining the overall bullish trend. In summary, while Bitcoin's price is currently stuck below $105,000 due to resistance and lack of a significant catalyst, historical data and technical indicators suggest that a bullish move is still possible. Traders should remain vigilant and prepared for potential price movements in either direction.
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