Bitcoin (BTC) price consolidates as resistance at $105,000 prevents a rally to new all-time highs.

Bitcoin (BTC) price has been consolidating within a roughly $3500 range over the past seven days as the $105000 level remains the overhead resistance to break.

Key takeaways:

* Bitcoin price has been consolidating as traders expected a move up to continue testing the overhead resistance at $105,000.

* As the market slips below $101,500, traders are becoming slightly bearish, but historical data suggests a sudden bullish move should not be ruled out.

* A lack of "serious catalyst" and large-volume trading entities placing liquidity at higher prices has kept Bitcoin price in a $3,500 range for seven days.

Bitcoin (BTC) price has remained in a relatively tight range as traders expected a continuation of the recent rally to see if the $105,000 level would be breached.

However, despite a slip below $101,500, one market intelligence firm says that traders are becoming slightly bearish, which could be a sign that another rally is due.

According to data from Cointelegraph Markets Pro and Bitstamp, BTC’s price has been oscillating between its 50-hour SMA (green) at $101,500, where it has found support, and the overhead resistance at $105,000.

As the cryptocurrency slips below the 50-hour SMA, traders are becoming slightly bearish, according to Santiment.

“Markets generally tend to move opposite to the crowd’s expectations, suggesting there is a heightened probability of crypto markets rising due to this increased fear,” the firm explained in an X post on May 15.

Its analysis of the market mood closely follows the behavior of traders on social media.

According to the firm, traders are becoming fearful again, which could be a sign that another rally is due.

“The last time we saw traders this fearful was in December 2022, shortly after FTX's collapse, an event that sparked significant volatility in crypto markets and saw Bitcoin plunge to lows around $15,500,” said Santiment.

Bitcoin lacks ‘serious catalyst’

After reaching 14-week highs of $105,700 on Friday, May 12, Bitcoin has managed to sustain $100,000 as support for over a week.

Despite following broad volatility across risk assets, BTC/USD might have gone even higher were it not for maneuvers of large-volume trading entities on exchange order books, according to trading resource Material Indicators.

Looking at the Binance exchange, Material Indicators said large blocks of ask liquidity were stacked above the spot price, pinning the BTC price in the range.

An accompanying chart shows that these liquidity clusters currently sit between $105,000 and $110,000.

“Unless we have a serious catalyst, I’m not expecting to see a sustainable breakout to the all-time high territory until BTC has a legit support test at $100,000,” it said in a May 16 post on X.

According to the analysis, a key level to watch on the downside was the $98,000-$100,000 range.

Bitcoin bulls fight to hold key support levels

Meanwhile, trader Daan Crypto Trades said that the “start of the recent move” at $93,000 was essential for Bitcoin traders going forward.

Bitcoin is trading “far away from any large liquidity clusters. The price didn’t trade for a long time up here just yet. So, after the initial squeeze of shorts, there are not that many new positions built up around this area,” his X post said.

Material Indicators paid additional attention to the 50-day and 100-day simple moving averages (SMAs), key longer-term trendlines that formed a bullish cross, indicating a “strong upward momentum for the macro trend.”

For MN Capital founder Michael van de Poppe, $98,000 is a “crucial area to hold on to” in order to ensure continuation upward.