Bitcoin Consolidates Near $98K as Market Awaits Breakout

Bitcoin, the largest cryptocurrency, remains in a consolidation phase, trading between $93,000 and $98,000. Despite attempts to surpass its all-time high of $109,114 set on Jan. 20, 2025, Bitcoin has struggled to maintain bullish momentum, stalling below $105,000 in late January.

With price movement tightening, Bitcoin’s one-week realized volatility has dropped to 23.42%, nearing historical lows seen in October 2024 (22.88%) and November 2023 (21.35%), according to Glassnode. Historically, such volatility compression has preceded significant price moves. One-week implied volatility has also fallen to 37.39%, a multi-year low, while long-term implied volatility remains elevated (three-month IV at 53.1%, six-month IV at 56.25%).

Analysts suggest Bitcoin is approaching a decisive moment. If buy pressure strengthens, BTC could break above $109,114 and establish a higher trading range. However, if demand weakens, Bitcoin may face a deeper correction, driven by panic selling among recent buyers.

At the time of writing, Bitcoin was up 1.49% in 24 hours, trading at $98,915 after hitting an intraday high of $98,980. BTC is encountering resistance at $99,067, near its 50-day simple moving average (SMA). A breakout above this level could pave the way for a return to $100,000.

On the downside, a strong demand zone sits around $97,100, where 2.76 million addresses hold 2.1 million BTC, per IntoTheBlock data. This level may serve as key support if selling pressure intensifies. As Bitcoin's price remains compressed, traders anticipate a potential breakout in the coming days.