Bitcoin (BTC) Stagnates in $100k-$110k Range Amid Cooling Metrics

Bitcoin (BTC) has continued to trade within a narrow range of $100,000 to $110,000, according to Glassnode Insights. This follows a brief dip to $99,000, attributed to heightened geopolitical tensions, before rebounding to $106,000 as tensions eased. Despite this recovery, the cryptocurrency remains under pressure due to cooling activity metrics and a lack of significant demand.

Market Consolidation and Support

The cryptocurrency has been consolidating within this range since early May, with strong structural support identified between $93,000 and $100,000. This zone, highlighted in the CBD Heatmap, represents a significant accumulation area from the first quarter of 2025. As long as Bitcoin holds above this range, the bull market structure remains intact, though a breakdown could lead to a deeper correction if holders begin to sell.

Cooling Profitability and Activity

Profit-taking has slowed, with realized profits tapering off after a third major wave in this cycle. On-chain transfer volume has decreased by approximately 32%, while spot trading volume remains low at $7.7 billion, indicating reduced investor engagement. This cooling is typical in consolidation phases where market volatility declines and investor activity diminishes.

Futures Market Dynamics

Despite high trading volumes, the futures market is showing signs of caution. Open interest has dropped by 7%, and liquidations have surged, reflecting a lack of conviction among traders. Falling funding rates and a declining 3-month basis suggest a reduced appetite for long positions, pointing to a more conservative speculative environment.

Outlook and Risks

While the current market structure remains supportive, a breakout to new highs will likely require a resurgence in demand and investor conviction. Without these, the market is expected to remain in its current holding pattern. The sustained yet cautious participation in the futures market further underscores this sentiment.

For more detailed analysis, visit the original source on Glassnode Insights.

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