Bitcoin (BTC) is consolidating in a descending channel, trading around $107,174, with weak on-chain activity suggesting limited momentum.
The market saw sharp volatility earlier in the week, leading to a rare dual liquidation event—$28.6 million in longs and $25.2 million in shorts wiped out in 24 hours, according to Glassnode. Open interest dropped by 7%, signaling a reset in speculative leverage.
Technically, BTC remains range-bound between $100K–$110K, with a key support zone near $103,400–$104,600. This level aligns with a fair value gap and the 200-day EMA, offering potential for a short-term bounce.
However, rising core inflation (2.7%) and sticky prices reduce the chances of a Fed rate cut, keeping pressure on Bitcoin. On-chain metrics also show fading profitability and low user activity, reinforcing the ongoing consolidation.
