Bitcoin (BTC) price has been fluctuating between $65,300 and $68,400 for nearly ten days, as the 2021 all-time high around $69,000 remained a stubborn resistance.
Data from Cointelegraph Markets Pro and TradingView shows Bitcoin price trading at $66,678, up 0.36% amid lower trading volumes, suggesting an extended consolidation period.
Let’s look at the reasons why BTC price remains stuck today.
Bitcoin is stuck between two significant levels
On July 19, Bitcoin price reclaimed the $64,000 level, fueled by changing US political narratives to the crypto industry and anticipation of the launch of US-based spot Ethereum ETFs.
Several attempts have been made to push the price higher toward $70,000, but each has failed to spark a broader price trend.
Instead, Bitcoin has been chopping below this key area and is “currently stuck between spot demand and spot supply,” according to independent trader and analyst Skew.
Drawing from the recent price action, Bitcoin has dropped from a swing high of $70,000 on July 29 to a swing low of $65,280. This price action has led to the appearance of new spot demand between $65,000 and $62,000 with supply building up between $70,000 and $72,000.
“This spot demand is a new set of limit bids, bid liquidity yet to be tested.”
Skew’s observations were corroborated by data from Coinglass which shows high bid and ask orders building up on either side of the spot price. Currently, there are approximately $40.6 million ask orders between $66,800 and $67,000. On the other hand, roughly $60 million bid orders are sitting between $66,000 and $65,370.
Note these price levels are just below or above the spot price, suggesting that there is a tug-of-war between the bears and the bulls.
Additional data from market intelligence firm IntoTheBlock helps to explain the ongoing stalemate between buyers and sellers. Its in/out of the money around price (IOMAP) model reveals that the price is currently between two significant levels.
There is robust support around the $60,000 to $66,000 demand zone, where approximately 2.34 million BTC were previously bought by 4.9 million addresses.
On the upside, the supplier congestion zone between $66,500 and $70,000 poses a stiff barrier for the bulls. This is where approximately 2.94 million BTC were previously bought by roughly 5.2 million addresses.
Related: BTC price lower highs keep Bitcoin bears in control at $70K
Bitcoin historical volatility remains low
From a historical perspective, Bitcoin volatility remains at its lowest levels.
“#Bitcoin has entered day 96 of low volatility, the longest single period we have seen this cycle,” pseudonymous analyst CryptoCon wrote in a July 22 post on the X social media platform.
CryptoCon explained that the 5-day Historical Volatility index was on the verge of escaping from the low volatility zone.
“The last time this happened? There were 176 days of excitement/expansion. Our waiting will pay off.”
Data from TradingView shows the Bitcoin historical volatility index at 6.82 as of July 31, far below its 2021 peak of 42.7.
All these factors paint the current picture of the Bitcoin market, where the price appears to be stuck in a narrow range.
However, changes always occur very quickly, so market participants should closely monitor onchain metrics and technical indicators to stay informed.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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