Bitcoin Consolidates Between $100K–$110K as Traders Await Breakout
Bitcoin (BTC) is trading in a tight range, currently hovering around $107,424, as the market digests recent volatility and faces renewed macroeconomic headwinds. Despite a series of price swings earlier in the week, Bitcoin remains within the $100,000–$110,000 range, signaling a consolidation phase supported by onchain and technical data.
Weak demand and fading onchain metrics suggest the current price action lacks the momentum to break higher.
According to Glassnode, Bitcoin’s open interest dropped by 7%, falling from 360,000 BTC to 334,000 BTC, after a rare dual-sided liquidation of $28.6 million in long and $25.2 million in short positions. This reflects a reset in speculative leverage, shaking out overexposed traders and hinting at short-term caution.
Descending Channel and Support Near $104K
From a technical standpoint, Bitcoin’s failure to reclaim liquidity near $109,000 has kept it trading within a descending channel on the 4-hour chart. Analysts point to a key support zone between $103,400 and $104,600, backed by a daily fair value gap (FVG) and the 200-day EMA, which could act as a launchpad for a potential bounce.
However, unless onchain participation improves, this support may only prolong consolidation rather than trigger a breakout.
Onchain Activity and Market Sentiment Cooling
Glassnode reports show profitability metrics are fading and user engagement remains low, further reinforcing a neutral-to-bearish outlook. Spot trading volume saw a mild $7.7 billion increase in Q2, but overall transfer volume declined 36%, indicating a lack of speculative urgency.
“The market appears to be digesting recent gains, likely waiting for a renewed surge in demand to fuel the next leg higher,” Glassnode noted.
Inflation Data and Fed Policy Continue to Weigh on Bitcoin
Rising core inflation (2.7%) and sticky price growth reduce the likelihood of near-term Federal Reserve interest rate cuts. The recent PCE inflation data, the Fed’s preferred gauge, rose to 2.3%, matching expectations but signaling renewed inflationary pressure.
Tight financial conditions remain a headwind for risk assets like Bitcoin.
Conclusion: Consolidation May Continue Until New Catalyst Emerges
Until Bitcoin breaks above the descending channel resistance and onchain demand returns, the broader market may remain in a sideways consolidation phase. For now, traders are watching the $104K support and macroeconomic indicators closely as they wait for the next directional move.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.