Bitcoin is struggling to break through a major resistance level, according to the analytics platform Swissblock.
Bitcoin Stuck Below $110,000
Currently trading around $104,000, Bitcoin is facing a tough time climbing above its all-time high of nearly $112,000. Swissblock sees Bitcoin “stalling” below $110,000, creating a trading range between $100,000 and $110,000. They believe a significant price increase (“breakout”) is unlikely without some fundamental improvements in the market.
Double-Top Concerns and Low Liquidity
Earlier this week, Swissblock warned about the possibility of a “double-top” pattern – a bearish indicator suggesting a price reversal. This concern is fueled by decreasing Bitcoin liquidity, meaning lower trading volume and fewer transactions. A joint report, Bitcoin Vector, from Swissblock and analyst Willy Woo, shows this declining activity.
Stable Network Growth Offers Hope
Despite the low liquidity, Bitcoin Vector offers a more optimistic outlook. The report highlights that the Bitcoin network is still growing steadily, and users aren’t leaving the market en masse. Furthermore, profit-taking (selling) remains low, suggesting limited downward pressure on the price. In short, while the price is stagnant, underlying network health seems relatively strong.
