Bitcoin Consolidates Below ATH Amid Strong Market Momentum

Bitcoin holds firm above $90,836 support, but consolidation near resistance signals caution as market awaits price discovery confirmation.

Despite strong April gains, Bitcoin shows relative weakness versus stocks, highlighting the need for momentum above $108,493 to sustain trend.

Failed March breakdown and strong rebound affirm buyer interest, yet traders remain cautious with resistance capping further upside for now.

Bitcoin surged into May with solid momentum, nearing its previous all-time highs before facing stiff resistance. After a steep rally from November 2024 lows under $74,000, the asset peaked near $108,493. The price now trades around $103,832, holding strong just below the resistance zone. Despite a recent pullback, Bitcoin maintains a bullish structure above the critical $90,836 level.

The market initially responded positively to easing trade tensions, with Bitcoin outperforming traditional equities. However, once the uncertainty faded, stocks continued climbing while BTC stalled. This divergence hints at relative weakness as BTC trades near resistance without a breakout. Moreover, the recent candles show hesitation, indicating possible short-term exhaustion. Still, the longer-term structure remains intact as long as Bitcoin stays above its key support.

Critical Support Holds Amid Volatility

Throughout December 2024 and January 2025, Bitcoin attempted multiple breakouts above $108,000. Each effort failed, leading to range-bound movement between $90,836 and the upper boundary. In late January, the price tested the key support level and rebounded, confirming its significance. The failed breakdown in March was pivotal. Price dipped below support but quickly reversed, showcasing strong buyer interest between $75,000 and $85,000.

Source: Daan Crypto Trades

Hence, April saw renewed bullish pressure. Bitcoin steadily climbed, reclaiming the $90,836 level and breaking back into the upper range. The breakout marked a transition from consolidation to a more aggressive bullish phase. By late April, Bitcoin touched the upper resistance, triggering fresh optimism. However, recent hesitation suggests that traders are cautious near price discovery zones.

Short-Term Risks, Long-Term Optimism

Currently, the market is consolidating just under resistance. Additionally, stocks have surged 30–50% recently, increasing the risk of a correction. If equities retrace, Bitcoin may see a short-term flush. Still, the long-term trend remains bullish above $90,836. Traders are eyeing this level as the key line for maintaining spot exposure. A drop below it could trigger de-risking, while a move above $108,493 would likely spark a new rally.

Consequently, BTC remains in a wait-and-see phase. Momentum is strong, but confirmation is essential. Price discovery above resistance could unlock fresh all-time highs. Until then, Bitcoin remains range-bound, with eyes fixed on critical levels.

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