This is the reason Bitcoin bulls are unable to change the $42K BTC price range.
Bitcoin (BTC) remains stuck below $43,000 this week as even institutional buying has little impact on markets.
Liquidity keeps Bitcoin bulls tied up.
Data from Cointelegraph Markets Pro and TradingView confirm that BTC price action is focused on a narrow range – for the seventh day in a row.
Bitcoin has underwhelmed traders since the first US spot exchange-traded funds (ETFs) plunged 15% in two days.
While they haven't presented further downside so far, bulls are also unlikely to push BTC/USD back to even the top of its broader trading range, $48,000 as the ceiling.
Examining what obstacles lie in the way, trading resources' material indicators point to a key problem: too much liquidity in spot prices.
On January 18, X (formerly Twitter) repeated a familiar mantra to subscribers: “Liquidity dampens volatility.”
“THIS IS WHY BITCOIN HAS BEEN TRADING SIDEWAYS SINCE SATURDAY BETWEEN $41.5K – $44K.”
Material Indicators Liquidity heat map of BTC/USDT order book on the largest international exchange Binance shows the bid support around $42,000 and $42,500.
“Another $10M+ BTC bids have moved above $42k on the Binance Order Book weekly view, but resistance above $43.5k is getting stronger,” he continued.
As Bitcoin fell below $44,000, strong selling interest was seen both there and at $45,000, the heatmap further confirmed.
Material indicators concluded that there were no clear candidates to disrupt the market in the short term.
Analyst: “No wonder” BTC price dropped from highs
Other different theories why Bitcoin does not respond to the launch of the ETF with immediate gains, meanwhile, continue to emerge.
Related: Did $5B Bitcoin Well Sell Trigger a Post-ETF BTC Price Crash?
In his own X post of the day, Philip Swift, the creator of the statistical resource, showed a classic sign on the Value Days Destruction (VDD) multi-metric.
VDD, which multiplies the existing coin days, shows the local peak when the current BTC price decay metric exceeds 1.5 to compare the rate of spending over time, Swift explained.
For this early stage of the cycle, “broken value days have reached multiple bubble levels,” he wrote with the indicator publication.
“No wonder bitcoin price freeze is necessary”
Cointelegraph reported that VDD Bitcoin was in a bull market in early July last year.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
