Bitcoin’s (BTC) price has been consolidating within a roughly $8,200 range over the last seven days as the $100,000 mark remains elusive.
Bitcoin has been stuck between its resistance level at $99,700 and support at $91,600 since dropping from its Nov. 22 all-time high of $99,655.
BTC/USD four-hour chart. Source: Cointelegraph/TradingView
Let’s look closer at the reasons why the BTC price remains stuck today.
Demand for Bitcoin investment products stalls
Bitcoin’s price has remained stagnant over the last week primarily due to the Thanksgiving holiday in the United States and a decrease in flows into BTC investment products.
For instance, outflows from Bitcoin investment products totaled $457 million over the week ending Nov. 29. Spot Bitcoin ETFs balances have also been relatively stable since Nov. 25, despite both record inflows and outflows in November.
Meanwhile, the hourly Net Realized profit peaked at $1.08 billion on Nov. 21 before dropping and plateauing around $33 million in the previous seven days.
The chart below displays the Net Realized Profit/Loss metric used to assess the hourly change in onchain capital flows for Bitcoin, measured in US dollars.
At present, it can be seen 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 Dec. 2, Bitcoin price fell below the support provided by the 50-period simple moving average (SMA) at $95,821, as shown in the four-hour candle stick chart below.
This move, however, saw BTC/USD find 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 it needs to surpass the resistance at $98,200 to break out of the current consolidation pattern.
BTC price is also pinned under a relatively stiff barrier, sitting within the $96,422 and $97,111 congestion area, as per data from IntoTheBlock.
The in/out of the money around price (IOMAP) chart below shows that this is where more than 733,760 addresses acquired approximately 597,620 BTC within this range.
Bitcoin IOMAP Chart. Source: IntoTheBlock
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 previously bought 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.
