Why has the price of Bitcoin stalled?
In the past seven days, the price of Bitcoin has been like treading water, oscillating within the range of $8200, unable to break through the $100,000 mark.
Since falling from the high of $99,655 on November 22, Bitcoin has been hovering between the resistance level of $99,700 and the support level of $91,600.
Let’s take a look at why the price of Bitcoin has hit a snag.
Firstly, with the American Thanksgiving holiday, the demand for Bitcoin investment products has dried up. For instance, by the week of November 29, money flowed out of investment products at a rapid rate, totaling $457 million. Although the inflow and outflow of money in November reached new highs, the money in spot Bitcoin ETFs has been stable since November 25, with no significant movements.
Looking at the net profit per hour, on November 21, it peaked at $1.08 billion, but then over the next seven days, it steadily declined to around $33 million. Currently, the forces of making money and losing money are evenly matched, and the market has come to a standstill.
Moreover, the price of Bitcoin seems to be squeezed between two lines. On December 2, the price fell below the support of the 50-period simple moving average at $95,821, but fortunately, it was caught at the 100 simple moving average, which is at $95,051.
Although the price has climbed back above the 50 simple moving average, breaking the current stalemate will require overcoming the resistance level of $98,200.
According to the data, Bitcoin’s price also faces a tough challenge in the congestion zone between $96,422 and $97,111. Within this area, over 730,000 addresses are holding approximately 590,000 Bitcoins.
Of course, there is good news as well; at the 100 simple moving average of $95,051, there is a buyer congestion area between $92,876 and $95,736, where over 680,000 addresses have purchased approximately 340,000 Bitcoins, currently providing support for the bulls.
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