Why bitcoin price is jammed?

Cointelegraph offers insights into the prolonged period of fluctuating Bitcoin prices, spanning over ten weeks.

Bitcoin (BTC), currently priced at $67,333, has been locked within a $10,000 price range for over ten weeks, with new all-time highs proving elusive. Despite numerous efforts to surpass $72,000 or drop below $60,000, BTC has stayed within this range, highlighting the uncertainty among traders.

On May 29, at the time of reporting, the price of BTC had dipped by 0.25%, reaching an intraday low of approximately $67,522. This decline occurred alongside reduced trading volumes, indicating a prolonged phase of consolidation.

BTC price supported by 2021 highs

According to data from Cointelegraph Markets Pro and TradingView, Bitcoin (BTC) has been fluctuating between $60,000 and $72,000 for close to ten weeks, facing difficulty in solidifying previous all-time highs as stable support levels.

Renowned analyst Daan Crypto Trades observes that BTC has hovered near its prior cycle peak for approximately 11 weeks.

Looking back, Bitcoin has typically required 4-8 weeks of consolidation around cycle highs before witnessing substantial price shifts.

Following its peak at $73,835, Bitcoin (BTC) underwent a period of consolidation. According to Glassnode’s “The Week On-chain” report released on May 28, BTC’s recent performance over weekly, monthly, and quarterly intervals has been relatively subdued compared to past cycles.

Traditionally, BTC has exhibited significant price increases of over 20% during these periods within a 90-day timeframe, indicating an extended bullish trend. However, in the last quarter, only five days have seen gains surpassing this threshold, indicating a market that is proceeding with caution.

Bitcoin whales are accumulating

The lateral movement of BTC’s value aligns with a decrease in BTC transfers from private custody to exchanges. From April 31 to May 28, the number of wallets depositing into exchanges dropped from 52,968 to 25,904, indicating a trend of whale accumulation. These large entities, holding over 1,000 BTC, are expanding their holdings, which in turn diminishes market volatility.

Over the past quarter, data from IntoTheBlock indicates a rise in the number of wallets holding between $100,000 and $10 million worth of BTC.

Traders turn to lower levels for BTC’s support

BTC’s price has shown remarkable stability, staying above the $65,000 support level on shorter time frames. Michaël van de Poppe, the founder of MN Trading, proposes that BTC could maintain consolidation within the range of $67,000 to $70,000, with $60,000 serving as a crucial psychological support level.

Data provided by on-chain metrics aggregator IntoTheBlock underscores the importance of the $60,000 support level for Bitcoin. Analysis from its In/Out of the Money Around Price (IOMAP) model indicates that BTC has substantial support at this level compared to resistance levels during its recovery phase.

The IOMAP chart below illustrates that approximately 1.59 million addresses have previously acquired around 478,800 BTC within the $60,000 support zone.

BTC’s price might undergo consolidation within the range of $60,000 to $70,000 in the weeks following the halving, possibly preceding a parabolic surge.

Read More: Long-term holders accumulating Bitcoin drove investment inflows to $1 billion

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