Bitcoin Stabilizes Below All-Time High – Buying Momentum Diminishes as Stocks Excel.

Bitcoin is encountering rising threats of a reversal as bullish energy starts to wane near critical resistance levels. After several weeks of remarkable progress, BTC is currently stabilizing within a narrow range just below its historical peak, with buyers finding it challenging to push the price into new territory. This persistent uncertainty has sparked concerns among traders and analysts, who are keenly observing for indications of either a breakout or a significant retracement.

Cryptocurrency expert Daan provided an insightful overview of the current scenario, highlighting that Bitcoin initially surged due to recent tariff-related tensions, significantly surpassing traditional equity markets. However, as trade uncertainties began to alleviate and conventional markets regained momentum, Bitcoin’s momentum diminished and failed to sustain its gains. While stocks continued their upward trajectory, BTC stagnated—an unusual disconnection that hints at a return of caution within the crypto landscape.

With the price hovering around $103K and encountering critical resistance at $105K, bulls need to act decisively to reclaim dominance. A failure to do so could lead to a more substantial pullback, especially if macroeconomic conditions change or equity markets show signs of weakness. For the time being, all attention is on the trading range—specifically, which side breaks first.

Bitcoin Bulls Aim for Breakout, Yet Caution Mounts at Resistance

Bitcoin stands just 5% away from its all-time high near $109,000, trading around $103K while bulls strive to regain momentum. Following weeks of strong upward movement and a consolidation phase above critical levels, many analysts suggest that BTC is on the brink of a significant breakout. If the price surpasses the $105K resistance, it could lead to a new surge into price discovery, indicating the onset of a powerful bullish phase.

Nonetheless, selling pressure at current levels remains formidable. Bitcoin has faced difficulties breaking through higher levels, and some traders view the ongoing consolidation as a potential sign of exhaustion. Daan shared observations on recent behavior, pointing out that BTC experienced a sharp rise following macroeconomic tariff developments, outpacing traditional equities. However, as trade uncertainty began to lessen, stocks continued to rise while BTC struggled near resistance.

Daan identifies $90K as his critical boundary for long-term exposure. Should Bitcoin fall below this level, it could indicate a structural failure that has yet to materialize in this cycle. For now, he retains a cautiously optimistic stance as long as BTC remains above that threshold but acknowledges that the risk-reward dynamic was significantly better when BTC was priced 20-30% lower.

He also cautions that if traditional equities undergo corrections after their rapid growth—many having surged by 30-50% in just a month—it could lead Bitcoin lower in a short-term scenario. With BTC showing relative weakness near resistance, the next price movement will be pivotal in confirming either further upward momentum or the beginning of a broader decline.

Tight 4H Range Indicates Imminent Price Movement

The 4-hour chart indicates Bitcoin is tightly consolidated between resistance at $105,700 and support at $100,700, forming a narrow range that suggests a significant price movement is imminent. The price has remained stable for several days, encountering multiple failed breakout attempts above the $103,600 mark. This level continues to pose a significant obstacle for the bulls.

Importantly, Bitcoin holds above both the 200 EMA ($96,121) and the 200 SMA ($94,622), reinforcing the medium-term bullish outlook. Short-term momentum appears neutral, as indicated by the indecisive price action and declining trading volume. However, the trend remains intact as long as BTC stays above the psychological and technical threshold of $100,000.

A breakout beyond $103,600 with significant volume could stimulate a rally toward the $105,000-$109,000 range, facilitating a move into price discovery. Conversely, failing to maintain support in this zone might open the path for a swift decline to revisit the $98,000-$96,000 area, where the moving averages converge.

Traders should monitor for a clear breakout or breakdown, particularly as moving averages and previous highs align. This tight setup seldom endures for long, and a decisive movement could set Bitcoin’s trend for the remainder of the month.