Bitcoin Stalls at $98K, Facing Resistance Amid Bearish Pressure

Bitcoin's price hovers around $98,000 as markets stall, facing resistance at $99,500 amid bearish pressure and weak whale sentiment, suggesting possible consolidation ahead. The cryptocurrency market is experiencing uncertainty, with Bitcoin (BTC) remaining locked in a range-bound pattern. Resistance is firmly established around $99,500, and support at $97,700, making it difficult for Bitcoin to decisively move beyond these thresholds.

The recent commentary from David Sacks, President Trump’s Crypto Czar, labels Bitcoin as an “excellent store of value,” yet this endorsement has not translated into tangible market movement. The price action is compounded by increasing bearish sentiment, as reflected in the Directional Movement Index (DMI). The DMI’s bearish indicators suggest strengthening selling pressure, indicating that traders are wary of initiating new long positions until clearer bullish signals are observed.

Recent data from BTC’s DMI indicates a notable shift in market dynamics. As the Average Directional Index (ADX) has declined from 35.8 to 25.8, it suggests waning momentum in the recent recovery attempts, reinforcing the narrative of potential consolidation or downward movement for Bitcoin. The transition of the -DI rising above the +DI showcases a market increasingly favoring sellers, indicating that the bullish recovery momentum may be insufficient to counteract prevailing seller dominance.

The behavior of Bitcoin whales—wallets holding at least 1,000 BTC—has emerged as a focal point for gauging market sentiment. From a recent low of 2,034 on January 29, the count of whales has modestly rebounded to 2,041, reflecting some degree of stabilization in their market activity. Nevertheless, this slight recovery pales in comparison to the substantial decline witnessed previously, suggesting that large investors remain cautious in their approach.

As Bitcoin hovers within its established trading range, the challenge of breaking through the critical $99,500 resistance level continues to loom large. Recent analyses indicate that if Bitcoin cannot sustain above this threshold following multiple attempts, it risks slipping towards the $95,783 support level. More downward pressure could test even lower levels, potentially down to $91,266. Conversely, should Bitcoin manage to conclusively break through the $99,500 resistance,