Bitcoin price stuck under $107K: Here is why
Key points:
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Bitcoin trades within a narrowing range between $103,500 and $108,800 over the last six days.
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BTC price must establish $107,000 as new support to continue the uptrend.
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Liquidity thickening on both sides of the spot price suggests Bitcoin price could break out in either direction.
Bitcoin (BTC) price has been consolidating within a tightening $103,500- $106,800 range since May 30. According to technical and liquidity data, Bitcoin’s consolidation may continue for a few more days unless key levels are broken.
Bitcoin price must reclaim $107,000 to break out
According to one popular crypto analyst, Bitcoin may continue consolidating in its current range for a bit longer, particularly if the resistance at $107,000 is not broken.
“This is why this level is so vital for Bitcoin,” said MN Capital founder Michael van de Poppe in a June 4 post on X.
Related: Bitcoin bulls’ biggest threat is 2-month ‘tariff ultimatums’ trap: Analyst
He referred to the resistance above $107,000, which capped Bitcoin’s latest recovery. According to van de Poppe, bulls are required to overcome this barrier to initiate a fresh rally to new all-time highs.
“No breakout above it yet, but if it happens, we’re all the way toward a new ATH and $3,000 per $ETH.”
Fellow analyst Jelle said Bitcoin’s current consolidation cycle could continue for a few more days until the price breaks above $105,000, where the 50-day simple moving average currently sits in the four-hour time frame.
“Bitcoin is still compressing between the EMAs, on top of local support,” the analyst said in their latest analysis on X, highlighting the key support at $103,000.
“Give me a couple more days of chop, drive everyone insane, and then we send it higher once more.”
“With fiscal catalysts continuing to tilt macro conditions in BTC’s favour, any upside breakout could carry us past all-time highs,” said QCP Capital.
In a June 5 Telegram post, the investment firm said:
“Some institutional flows appear to agree. Demand for September 130K BTC calls is percolating, hinting at growing conviction behind a bullish breakout narrative.”
BTC looks to end liquidity tug-of-war
Data from monitoring resource CoinGlass showed liquidity thickening on both sides of the spot price, as shown in the chart below.
Traders are, therefore, looking for a liquidity grab that could trigger a breakout in either direction from the current range.
“If the market makers are looking for liquidity before another push higher, the cluster down to just below 100K looks like the target,” said popular Bitcoin analyst AlphaBTC in a June 5 X post, adding:
“A sweep of 100K and then we wait to see.”
Pseudonymous trader Columbus argues that Bitcoin will drop to take out liquidity around $100,000 before going higher.
In a June 5 post on X, the trader said:
“The alternative would be that the upside liquidity gets taken out first and then the downside liquidity afterward, which would drag the whole thing out even longer. ”
As Cointelegraph reported, Bitcoin could not flip the $106,000 resistance into support earlier this week.
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.
