Bitcoin is testing investor patience. The cryptocurrency has repeatedly failed to breach the crucial $98K-$100K resistance level in recent weeks. Market participants remain undecided about its short-term direction. This extended period of consolidation has created frustration among traders awaiting a definitive move.
Market stability was challenged on Friday when Bybit suffered a security breach. Hackers stole $1.4bn in Ethereum tokens from the cryptocurrency exchange.
The incident triggered immediate volatility. Bitcoin prices briefly tumbled before stabilizing as Bybit moved quickly to address investor concerns.
Despite the security incident, Bitcoin's price action remained constrained within the same trading range it has occupied for weeks. Crypto analyst Daan highlighted this phenomenon in a recent post on X. "BTC still ranges while volatility is steadily decreasing," he noted. "Price compression continues to increase." Historical patterns suggest such compressed trading ranges typically precede significant price movements.
Bitcoin has been unable to sustain momentum above $100K since late January. Bulls have made multiple unsuccessful attempts to confirm a recovery rally. Bears, meanwhile, have failed to drive the cryptocurrency below key support at $90K. This standoff between buyers and sellers has created an increasingly narrow trading channel.
The extended consolidation phase comes despite generally positive long-term sentiment. Investors maintain optimistic outlooks for substantial returns in coming months. Short-term price action, however, reflects market hesitation. The longer this compression phase continues, the more explosive the eventual breakout could be, according to technical analysts.
Friday's session demonstrated the market's current fragility. Bitcoin rallied to $99,500 before plunging to $94,800 on news of the Bybit hack. It has since recovered to $96,300.
Bulls must now defend the $95K level through the weekend to prevent further deterioration. A successful push above $98K would signal renewed bullish momentum. Failure to hold $95K could trigger a deeper correction toward the $91K-$94K support zone.
Market observers remain divided on Bitcoin's immediate prospects. The cryptocurrency's tight trading range and decreasing volatility strongly indicate an imminent directional move. Whether Bitcoin breaks higher or lower will likely set the tone for price action in the weeks ahead. Traders continue watching for signs of accumulation or distribution within the current range as the market awaits a catalyst for its next major move.
Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.