Analytics platform Swissblock is outlining the path forward for Bitcoin (BTC) amid stiff resistance at a level just below the all-time high.
According to Swissblock, Bitcoin is “stalling below $110,000” and the upward trend is now under pressure as a broad trading range appears to form between the resistance level and a price of $100,000.
“Consolidation may last, but one thing’s clear: No breakout without strong fundamentals.”
Bitcoin is trading at $104,447 at time of writing, around 7% below the all-time high of just under $112,000 reached last month.
Earlier in the week, Swissblock had warned that a failure by Bitcoin to break out amid a lack of fresh investor flows could lead to a double-top.
A double-top is an extremely bearish technical reversal pattern formed when the price of an asset forms two consecutive peaks, an indication that there’s a strong resistance level that the price is unable to pierce through.
According to Bitcoin Vector, a joint report by Swissblock and on-chain analyst Willy Woo, BTC liquidity has been trending lower for the past couple of days, an indication of falling volume levels, a declining number of transactions and reduced activity.
But Bitcoin Vector says a further correction is unlikely.
“Here’s the interesting part: network growth remains stable, participants are not leaving the market.
This aligns with a key point from Bitcoin Vector: profit-taking remains low, meaning selling pressure is limited.”
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