Bitcoin is currently experiencing a slight bearish trend, fluctuating within the range of $97,000 to $111,900, as per reports. The cryptocurrency encounters notable resistance at the $106,000 mark, further complicated by ETF outflows and low leverage, indicating a wary market atmosphere. The present trading range indicates seller fatigue around the $100,000 mark, establishing short-term support. However, the absence of robust follow-through demand is clear, as the market continues to be constrained by a significant supply cluster between $106,000 and $118,000, a resistance zone where numerous investors are opting to exit close to breakeven, thereby constraining upward momentum.
Recent data indicates that Bitcoin has briefly fallen below $100,000, marking a continuation of the downtrend that initiated in early October. The market is currently facing a notable absence of conviction and liquidity, leading to a downward trend in prices. Seller exhaustion is apparent, with a notable share of realized value stemming from coins sold at a loss, underscoring the market’s top-heavy structure. The Cost Basis Distribution Heatmap reveals a concentration of realized supply in the sub-$100,000 range, pointing to a resurgence in accumulation. Nonetheless, the ongoing resistance above $106,000 remains a significant hurdle for any prospects of a lasting recovery.
Indicators are signaling a cautious market stance. US spot Bitcoin ETFs are experiencing slight outflows, suggesting a temporary halt in institutional buying activity. Futures markets are reflecting muted funding rates and low open interest, indicating a lack of speculative activity. Options traders are adopting a cautious approach, with put protection heavily focused around the $100,000 mark. Bitcoin mining equipment. The derivatives market shows a notable absence of speculative interest, as traders are de-risking and holding a low conviction stance on both Bitcoin and altcoins, with the prevailing cautious sentiment underscored by the robust demand for put options, indicating traders’ inclination towards securing downside protection.
Overall, Bitcoin’s market structure continues to exhibit bearish tendencies, facing significant resistance in the range of $106,000 to $118,000, while key support levels are identified around $97,500 to $100,000. The market is stabilizing; however, it has yet to display any indications of a bullish reversal. Until renewed inflows or a clear macro catalyst emerge, Bitcoin is likely to continue fluctuating within this established range, with $100,000 acting as a psychological barrier.