The recent price development highlights the lack of conviction in the market, with traders choosing to wait for clearer signals before taking new positions.
The world’s largest cryptocurrency by market capitalization has failed to stay within its consolidation range between $106,000 and $116,000 as purchasing power declines, according to Bitfinex Alpha.
The price movement is demonstrating little conviction from the bulls, leading to a decline in investor confidence and sentiment. The crypto asset briefly rose to $116,000 last week, offering temporary relief to traders. However, long-term holders began selling, but large institutions did not step in to buy, causing the price to drop.
Traders Become Cautious As Price Movements Fall
the platform noted that in the options market price movements are increasingly smaller. This suggests that traders are becoming uncertain about the direction of the leading crypto asset and are choosing to remain cautious following the big sell-off on October 10. The uncertain development has slowed down due to general economic factors.
According to the update, the recent Federal Open Market Committee (FOMC) presented unclear signals on growth and inflation. These signals made investors less willing to take risks.
Despite holding above the $106,000 support level, signs indicate that the market is weakening. On-chain analytics data revealed that long-term investors sell approximately 104,000 BTC each month. This means that many traders are making profits rather than keeping them. Meanwhile, short-term traders are losing confidence as their profits shrink and new buyers are about to enter the market.
BTC Price Risks Fall Towards $100,000 Zone
Without renewed flow into ETFs, BTC price is likely to remain stuck in the same range and could fall further as it did on Tuesday. At the time of writing, the digital asset is trading below $104,000, according to data from CoinGecko.
If BTC falls below that zone, the asset could slide towards $100,000. However, if it rises above $116,000 with strong trading activity, it may be the first sign of a real recovery come November.
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