- Bitcoin has crossed $107K and is now testing $112K, a key level that could define its next major move.
- Despite gains, Bitcoin remains in a tight range with high risk of false breakouts and limited momentum.
- Low liquidity and weak retail interest continue to limit Bitcoin’s ability to break through resistance.
Bitcoin (BTC) trading within a narrow range for over two months now has made traders uncertain about where it will go next. Analysts believe cryptocurrency is consolidating first and then attempting sudden increases. While prices are mostly moving up, the trend’s hesitancy is a reason why many are still hesitating before purchasing cryptocurrencies.
Daan Crypto Trade highlighted in a recent X post that the current pattern for Bitcoin is very much like what happened in earlier periods of consolidation. He pointed out that, while the trend remains positive, the asset is currently in a tight range that doesn’t allow much growth. In his opinion, trading the whole range often means facing issues with both sides losing and poor possibilities for risk-to-reward.
Source: X
Key Levels to Watch
According to him, traders should pay attention to the areas between $106,000 and $107,000 and $112,000. If Bitcoin reaches these prices, it could determine which way the currency moves for the next part of its journey. So far, the easiest advice is this: stand clear of trading in the average range and look for solid reasons to trade.
More Crypto Online pointed out that Bitcoin has moved below crucial macro support points. It makes the setup simpler, they say and adds more weight to the argument for a continuing correction. According to their Elliott Wave analysis, wave C of (A) could fall to a significant blue support line.
Source: X
Bitcoin Faces Uncertain Road
The differences in views among traders are an indication of the uncertainty in the market right now. Although a few think the price could move up if resistance is passed, many remain doubtful and believe the price will keep falling prior to an uptrend. With so much uncertainty, a lot of people in markets are choosing to wait.
The market is felt to have low liquidity as well. The number of retail traders is not growing and total trading volume is still slow. The lack of new money being injected into Bitcoin has slowed its ability to keep rising steadily. Analysts predict that for Bitcoin to break through, there must be either a technical factor or something outside the market such as breaking news or changes in regulations.
Bitcoin has moved past $107,000 and is fast approaching its next key resistance at $112,000. The current level is now considered the area analysts should keep a close eye on. A break above its highest level lately could show increasing bullish strength and allow for a stronger rise. At this point, people still need to be careful because there are chances of false gains and increased swings in prices.
Read More: Bitcoin’s 99% Profit Threshold: Is the Market Heading Toward a Correction?