Bitcoin Remains Range-Bound As Volatility Declines – Analyst Explains Price Action

Bitcoin has experienced frustrating price action in recent weeks, leaving investors impatient about its short-term direction. The price has been testing crucial supply levels between $98K and $100K, struggling to break out as uncertainty dominates the market. The lack of a clear move has led to speculation about whether BTC is preparing for a breakout or another correction.

Adding to the uncertainty, the market was hit by negative news on Friday when crypto exchange Bybit was hacked, resulting in the theft of $1.4 billion in ETH. The incident caused fear and volatility, briefly dragging prices lower. However, Bybit responded quickly to reassure investors, easing some of the initial panic and stabilizing the market.

Despite this, Bitcoin continues to consolidate in a tight range. Crypto expert Daan shared an analysis on X, noting that BTC is still ranging while volatility is steadily decreasing. As price compression increases, traders are on high alert for a potential explosive move. Historically, such tight ranges often precede major price swings, but the direction remains uncertain. With Bitcoin holding above key demand levels, the next move could determine whether BTC pushes into new highs or faces another pullback.

Bitcoin Consolidates Between Key Levels

Bitcoin has struggled below the $100K mark since late January, with bulls unable to confirm a recovery rally despite multiple attempts. Meanwhile, bears have also failed to push BTC below key demand levels, keeping the price above $90K. This ongoing battle between supply and demand has created an uncertain short-term outlook, leaving the market waiting for a catalyst to determine the next move.

The lack of a clear direction has led Bitcoin into a prolonged consolidation phase. Investors remain optimistic about high returns in the coming months, but short-term price action suggests hesitation. BTC continues to trade within a tight range, reflecting the indecision among traders. Analysts argue that a major move is inevitable, but whether it will be a breakout or breakdown remains uncertain.

Daan’s analysis explains short-term price action, revealing that BTC range still ranges. Meanwhile, volatility is trending down as price is getting more and more compressed. Even during Friday’s drama, when the Bybit hack news sent shockwaves through the market, BTC still closed at the same price region where it has been for the past two weeks. This highlights the extreme consolidation phase, as price action fails to confirm a breakout or a breakdown.

The longer this compression phase lasts, the bigger the eventual breakout will be. If BTC reclaims the $100K mark, a strong rally could push it into new highs. However, if the price breaks below key demand levels around $94K, BTC could enter a deeper correction, testing the $90K demand zone. The coming days will be crucial, as Bitcoin’s volatility compression suggests an imminent, aggressive move.

Bulls Struggle To Reclaim $100K

Bitcoin is trading at $96,300 after a volatile Friday, where price action saw a sharp rally to $99,500 before crashing to $94,800 following news of the Bybit hack. The sudden drop triggered fear in the market, but BTC quickly rebounded, showing resilience amid uncertainty. Now, bulls must hold above the $95K level throughout the weekend to sustain momentum and prevent further declines.

For BTC to confirm a bullish breakout, it must push above the $98K level and reclaim short-term control. This would pave the way for another attempt at breaking the critical $100K resistance. However, failure to hold above $95K could lead to a breakdown into lower demand levels, with the next major support around $91K–$94K.

Market sentiment remains divided, as Bitcoin’s tight range and low volatility indicate an imminent move in either direction. If BTC continues consolidating between $94K and $100K, traders will be watching for signs of accumulation or distribution. The next week will be crucial in determining Bitcoin’s short-term trajectory. Whether BTC breaks above resistance or falls into deeper support will set the tone for the coming weeks, as investors anticipate a decisive move amid ongoing market uncertainty.

Featured image from Dall-E, chart from TradingView