Bitcoin is currently trading around $103,700, near the monthly Point of Control (POC), which is the price level with the highest traded volume over a given period, often acting as a key reference for support or resistance. The price has been trending sideways, establishing a high of $105,800 and a low of $100,700. Notably, buyers stepped in aggressively as the price approached the psychological $100,000 level, which coincided with the monthly Volume Weighted Average Price (VWAP). The VWAP is a trading indicator that calculates the average price of an asset based on both price and volume, often used to identify dynamic support or resistance levels. This confluence of the $100,000 psychological level and VWAP reinforced its role as a strong support zone.
However, price action appears to be losing momentum—a term describing the strength or speed of price movements. This slowdown is likely due to short-term holders taking profits at these elevated levels, as is common near significant round-number thresholds like $100,000.
Chart 1: Recent Price Action
Since breaking above $100,000 on May 9, 2025, Bitcoin’s price action has shown signs of waning momentum on the 4-hour timeframe, forming lower highs (subsequent peaks at decreasing price levels) and higher lows (subsequent troughs at increasing price levels). This pattern suggests a potential consolidation phase, where the market is indecisive before its next major move.
A key area of interest lies between $97,000 and $95,000, where the price briefly consolidated during its strong upward push toward $100,000. This zone aligns with a significant support area, with the monthly low at $93,000 acting as a critical level. Should the price retrace to this $97,000–$95,000 range, it could present an attractive opportunity for a long position. However, traders should closely monitor buyer reactions—specifically whether they absorb selling pressure at these levels. On-chain data also indicates this zone was a strong area for accumulation in the spot market during the upward move, further highlighting its significance.
Chart 2: Fair Value Gap and Key Levels
Another critical area of interest lies between $91,000 and $88,000, where a fair value gap (FVG) exists. An FVG is a price range where rapid, inefficient market moves (often due to low liquidity) leave a gap in traded volume, which can act as a “magnet” for price to revisit. The $91,000 level also marks a pivotal point from the previous trading range, coinciding with Bitcoin’s first all-time high between December 2024 and early 2025. This historical significance makes it a likely target for price action if a deeper retracement occurs.
Chart 3: Funding Rates and Market Sentiment
The funding rate—a small fee paid between long and short positions in perpetual futures contracts to balance the market—remains positive, indicating a bullish bias among futures traders. A positive funding rate suggests that longs are paying shorts, reflecting optimism. Interestingly, during the move to $100,000, the funding rate stayed relatively low, implying the rally was primarily driven by spot market activity. This spot-driven move is typically a healthier sign of organic demand, as it reflects genuine buyer interest rather than speculative leverage.
Conclusion
I believe Bitcoin’s consolidation offers opportunities for long positions. I’d consider entering longs in the $97,000–$95,000 zone if buyers absorb selling pressure, given prior accumulation. A deeper pullback to $91,000–$88,000, near the fair value gap, also looks promising for longs if bullish momentum confirms. I’ll watch buyer reactions and funding rates closely before entering.
However, price action appears to be losing momentum—a term describing the strength or speed of price movements. This slowdown is likely due to short-term holders taking profits at these elevated levels, as is common near significant round-number thresholds like $100,000.
Chart 1: Recent Price Action
Since breaking above $100,000 on May 9, 2025, Bitcoin’s price action has shown signs of waning momentum on the 4-hour timeframe, forming lower highs (subsequent peaks at decreasing price levels) and higher lows (subsequent troughs at increasing price levels). This pattern suggests a potential consolidation phase, where the market is indecisive before its next major move.
A key area of interest lies between $97,000 and $95,000, where the price briefly consolidated during its strong upward push toward $100,000. This zone aligns with a significant support area, with the monthly low at $93,000 acting as a critical level. Should the price retrace to this $97,000–$95,000 range, it could present an attractive opportunity for a long position. However, traders should closely monitor buyer reactions—specifically whether they absorb selling pressure at these levels. On-chain data also indicates this zone was a strong area for accumulation in the spot market during the upward move, further highlighting its significance.
Chart 2: Fair Value Gap and Key Levels
Another critical area of interest lies between $91,000 and $88,000, where a fair value gap (FVG) exists. An FVG is a price range where rapid, inefficient market moves (often due to low liquidity) leave a gap in traded volume, which can act as a “magnet” for price to revisit. The $91,000 level also marks a pivotal point from the previous trading range, coinciding with Bitcoin’s first all-time high between December 2024 and early 2025. This historical significance makes it a likely target for price action if a deeper retracement occurs.
Chart 3: Funding Rates and Market Sentiment
The funding rate—a small fee paid between long and short positions in perpetual futures contracts to balance the market—remains positive, indicating a bullish bias among futures traders. A positive funding rate suggests that longs are paying shorts, reflecting optimism. Interestingly, during the move to $100,000, the funding rate stayed relatively low, implying the rally was primarily driven by spot market activity. This spot-driven move is typically a healthier sign of organic demand, as it reflects genuine buyer interest rather than speculative leverage.
Conclusion
I believe Bitcoin’s consolidation offers opportunities for long positions. I’d consider entering longs in the $97,000–$95,000 zone if buyers absorb selling pressure, given prior accumulation. A deeper pullback to $91,000–$88,000, near the fair value gap, also looks promising for longs if bullish momentum confirms. I’ll watch buyer reactions and funding rates closely before entering.
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Declinazione di responsabilità
Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.