Bitcoin is struggling with low trading activity and weak momentum, leading to subdued price action near the 100-day moving average.
Technical Analysis
Bitcoin remains in a phase of indecision, with price action hovering near the 100-day moving average at $98K. This prolonged consolidation, characterized by low volatility and weak momentum, suggests a balance between buyers and sellers. The RSI indicator reinforces this notion, highlighting the ongoing struggle between bullish and bearish forces, with key support and resistance levels. However, a decisive move is unlikely until liquidity returns.
Daily Chart Analysis
On the lower timeframe, Bitcoin initially attempted a bullish push but failed to break above the upper boundary of the bullish flag due to insufficient buying momentum. Currently, the asset is confined between the critical $90K support and the dynamic upper trendline of the bullish flag. A breakout could ignite a fresh rally.
On-chain Analysis
For further insights, examining market participants' accumulation behavior is crucial. The BTC exchange reserve metric, tracking the amount of Bitcoin held in trading platforms’ wallets, has been declining, indicating a phase of accumulation and reduced supply. A similar decline preceded a significant price surge in December 2022.
The current market situation is characterized by uncertainty and awaits liquidity return. With supporting factors, Bitcoin has growth potential.
