Bitcoin’s price has been stuck within a narrow range over the past week, with the $100,000 mark still elusive. The cryptocurrency has been trading between its resistance level at $99,700 and support at $91,600 since dropping from its all-time high of $99,655 on November 22.
BTC/USD Four-Hour Chart
Source: Cointelegraph/TradingView
Let’s take a closer look at the reasons behind Bitcoin’s price stagnation.
Demand for Bitcoin Investment Products Stalls
The primary reason for Bitcoin’s stagnant price is the decrease in demand for its investment products. The Thanksgiving holiday in the United States and the subsequent decline in flows into BTC investment products have contributed to this trend.
Outflows from Bitcoin Investment Products
Outflows from Bitcoin investment products totaled $457 million over the week ending November 29, indicating a decrease in investor interest. Spot Bitcoin ETFs balances have also been relatively stable since November 25, despite both record inflows and outflows in November.
Net Realized Profit/Loss Metric
The Net Realized Profit/Loss metric, used to assess hourly changes in on-chain capital flows for Bitcoin, measured in US dollars, has plateaued around $33 million over the past seven days. This suggests that both profit and loss forces are largely equal, resulting in market equilibrium.
Net Realized Profit / Loss (USD)
Source: CryptoQuant
Bitcoin Stuck Between Two Trendlines
On December 2, Bitcoin’s price fell below the support provided by the 50-period simple moving average (SMA) at $95,821. However, it quickly found support at the 100 SMA, currently sitting at $95,051.
BTC/USD Four-Hour Chart
Source: Cointelegraph/TradingView
Bitcoin’s price has now risen above the 50 SMA but needs to surpass the resistance at $98,200 to break out of its current consolidation pattern. The cryptocurrency is also pinned under a relatively stiff barrier within the $96,422 and $97,111 congestion area.
Bitcoin IOMAP Chart
Source: IntoTheBlock
The In/Out of the Money around price (IOMAP) chart shows that this is where more than 733,760 addresses acquired approximately 597,620 BTC within this range. On the downside, the 100 SMA at $95,051 is within the $92,876 and $95,736 buyer congestion zone, which is now providing support for the bulls.
Roughly 688,690 Addresses Acquired Approximately 348,720 BTC in This Zone
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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