Here is why Bitcoin price is stuck below $105K

Bitcoin’s price is currently consolidating, fluctuating between $101,500 and $105,000, failing to break through the significant resistance at $105,000. This consolidation has persisted for approximately seven days, creating a roughly $3,500 range. While the $100,000 support level has held for over a week, two previous attempts to surpass $105,000 have failed, leading to a slight shift towards bearish sentiment among traders, according to Santiment. However, this increased fear among retail traders is historically a bullish indicator, suggesting a potential price surge.

The lack of a “serious catalyst,” coupled with large-volume trading entities manipulating order books, particularly on Binance, is hindering a sustained breakout above the $105,000 resistance, according to Material Indicators. Significant liquidity clusters between $105,000 and $110,000 are acting as a price ceiling. Material Indicators identifies the $98,000-$100,000 range as a key support level to watch, cautioning against potential short squeezes and bull traps until a support test occurs.

A crucial level for Bitcoin’s upward trajectory is the $98,000 mark, which, if breached, could cause a drop to the $93,000 level, the start of the recent price rally, according to Daan Crypto Trades. The absence of substantial liquidity clusters above the current price suggests that, following the initial short squeeze, limited new positions have been established. Local highs above $106,000 and lows around $93,000 are key levels to monitor.

Despite the current consolidation, positive signs exist. The bullish crossover of the 50-day and 100-day simple moving averages indicates strong upward momentum in the long-term trend. Michael van de Poppe highlights $98,000 as a crucial support level to maintain the upward trend. The overall situation presents a complex picture, with both bullish and bearish indicators present, highlighting the uncertainty and volatility in the Bitcoin market.