Bitcoin Stuck in Tight Range as Investors Await Catalyst

Bitcoin (BTC) has been trading in a tight range between $94,000 and $99,000 over the past week, with investors adopting a cautious stance as they await the next catalyst to drive price action. The leading cryptocurrency has been stuck in a consolidation phase for weeks, with the price struggling to break above the $100,000 mark.

The Bitcoin blockchain has witnessed a significant decline in transaction activity this year, with daily transfer volumes dropping substantially from the record-breaking levels seen in 2024. Factors contributing to this decline include the reduced presence of Ordinals and Runes, as well as a decrease in fund transfers on the Bitcoin blockchain. Many BTC holders are waiting for favorable transactions, while exchanges are bunching payments into batch transactions, and custodians are controlling vast reserves of BTC that remain untouched.

Bitcoin analyst PlanB has revealed that he has moved his BTC holdings into spot Bitcoin ETFs, citing the desire to manage his holdings more traditionally and eliminate the complexities associated with holding his own wallet keys. However, the Bitcoin community has criticized this decision, arguing that holding one's own keys is the best way to ensure the security of BTC holdings.

Bitcoin's price action has been influenced by various factors, including geopolitical tensions and the potential for higher interest rates. Investors are concerned about the possibility of a trade war between the US and China, which could lead to market volatility and higher inflation. Additionally, the Federal Reserve's hawkish stance has contributed to the underperformance of risk assets, including BTC.

Over the past week, BTC has traded between $94,000 and $98,000, with sellers maintaining control for most of the period. Buyers attempted a recovery on Thursday and Friday, but these efforts were unsuccessful, and BTC fell back into bearish territory. Price action was muted over the weekend, with BTC dropping to a low of $94,836 on Sunday. The week started positively, with BTC registering an increase of 0.98% and settling at $97,468. However, sellers took control on Tuesday, and the price dropped nearly 2% to $95,800.

BTC fell to an intraday low of $94,118 on Wednesday