Why is #BTC price stuck?
Bitcoin price trades in a three-week range and data suggests the pattern could continue for a few more days as BTC "shark" demand and liquidity remain low.

Bitcoin price has been consolidating within a roughly $11,200 range over the last three weeks as bulls failed to sustain the recovery above $100,000.

Bitcoin has been stuck between its resistance level at $102,750 and support at $91,200 since dropping from its Dec. 17 all-time high of $108,364.

The crypto market appears to be in limbo ahead of US President-elect Donald Trump’s inauguration. 

“Bitcoin has been struggling to crack the much-coveted $100K psychological resistance level as the crowd has been growing restless once again,” Santiment analyst Brianq said in an analysis note on Jan. 10.  

According to the analyst, the lackluster price action displayed by Bitcoin is due to reduced buying by Bitcoin wallets holding between 100 and 1,000 BTC, also known as “sharks.” 

Brianq notes that “enormous accumulation” by these entities was responsible for Bitcoin’s 91% rally between Oct. 11 and Dec. 17, when it reached its current record highs. 

In addition, uncertainties surrounding the new US administration and the anticipation of significant data releases have led to reduced global liquidity.

The chart below shows Global Liquidity (Global M2), an indicator that tracks growth in global money supply from major central banks against Bitcoin price, which has been dropping since October 2023. Global M2 has been stuck within a narrow range over the last three weeks.

Reducing Global M2 means less money entering the global system, discouraging spending on perceived “risk assets” such as Bitcoin. This could reduce trading volumes, keeping Bitcoin’s price movements minimal.

“The battle right now is between the bullish divergences and the liquidity still lower,” said technical analyst Kevin in response to Bitcoin’s current price action.