Bitcoin price stabilizes around $107K as selling limits further gains.

Bitcoin’s price remains around $107,000 as legacy wallets discreetly sell into institutional demand, keeping prices steady despite increased activity.

At the time of writing, Bitcoin is trading at $107,619, a decrease of 2.8% from the previous day. The price fluctuated between $107,623 and $111,555 over the period, marking a 5% decline over the week and a 7% drop in the past month. Currently, Bitcoin is 14% below its all-time high of $126,080 set on October 6.

Trading activity has increased slightly, with a volume of $60.7 billion in the last 24 hours, representing an 11.4% rise from the last session. This increase indicates that traders are more engaged at the current Bitcoin (BTC) price levels. However, according to CoinGlass data, open interest has decreased by 2.3% to $70.12 billion, and derivatives volume has dropped by 19% to $102.37 billion.

These metrics suggest that traders are cutting back on short-term positions, often reflecting uncertainty and a cautious market sentiment.

Bitcoin selling pressure and market dynamics

A recent report by 10x Research, released on October 21, outlines two significant factors restraining Bitcoin’s progress. Firstly, digital asset treasury firms have reduced their purchases, with companies like Strategy acquiring smaller increments of Bitcoin compared to prior quarters. Secondly, long-term holders are selling into the market created by Bitcoin exchange-traded funds.

This consistent selling has hindered any significant price breakout, maintaining prices within a narrow range near $110,000. As per 10x Research, Bitcoin’s future performance relies more on fresh capital entering the market than on interest rates or macroeconomic factors. Without a substantial influx of new investments, low volatility and restrained price movements are anticipated.

This perspective is corroborated by an October 21 analysis from CryptoQuant Arab Chain, which observed that sellers dominated Bitcoin futures in October, leading to a drop in the long/short ratio to 0.955. This suggests that traders are exercising caution and adopting a slightly bearish outlook. Nevertheless, Bitcoin has remained above $107,000, indicating that buyers are still active at lower price levels.

Bitcoin price technical analysis

Bitcoin’s technical indicators suggest a neutral-to-bearish configuration. While momentum has lessened, the relative strength index, currently at 40, hasn’t yet entered oversold territory. Both the momentum and MACD indicators continue to signal selling pressure, confirming mild downward movement.

All significant moving averages from the 10-day to the 200-day lines are positioned above the current price, indicating a bearish trend in the medium term. Resistance levels are identified between $112,000 and $115,000, while immediate support is found close to $107,000.

If Bitcoin fails to maintain its current range, it could decline toward $102,000. Conversely, a decisive move above $115,000 might set the stage for a rally towards $120,000 and beyond.