Bitcoin is currently trading near a crucial support level of $104,000, but it is experiencing weak volume and fading on-chain activity, suggesting that price consolidation may continue. Recent volatility led to significant liquidations in the derivatives market, with $28.6 million in long positions and $25.2 million in shorts liquidated within 24 hours. Bitcoin's open interest noticeably dropped by about 7%, indicating a temporary clearing of speculative leverage and a market reset. While the price remains within the $100,000–$110,000 range, market activity has cooled down, and profitability metrics are declining. Also, the rise in Core PCE inflation to 2.7%, above forecasts, signals renewed inflationary pressure that is likely to hinder bullish momentum for Bitcoin. This inflation context suggests that potential interest rate cuts from the Federal Reserve are less likely, keeping financial conditions tight. Therefore, unless there is a resurgence in demand, Bitcoin's broader market structure may remain in this consolidation phase, awaiting a potential breakout if momentum improves.

Source 🔗