Right now, the price chart can be put aside for a moment to focus on Bitcoin\'s momentum if you want a clear illustration of what no man\'s land looks like. Bitcoin is currently merely floaty and unconvinced. In actuality, neither bulls nor bears appear willing or able to lead this market\'s next leg despite the price moving around $107,000.
Before price is momentum, and the momentum profile is painfully obvious: there is no strength. The RSI indicator is in a dead zone, meaning there is no directional bias in the low 50s. For traders anticipating a swift recovery of $110,000 or a clear breakout to new highs, that lack of energy alone ought to be a warning sign. Any attempts at an upside continue to be capped by the descending resistance line from the previous swing top, which was around $112,000 anyway.
Every attempt to reach that level has been met with immediate rejection and exhausted purchasing. The Bitcoin price, on the other hand, has barely held above the group of moving averages (20, 50 and 100 EMA) around $105,000. It is much more likely that there will be a more severe correction if bulls do not immediately inject new buying volume.
With the 100 EMA poised to serve as a last line of defense, the first support zone to keep an eye on is located around $100,600. The next significant area of interest below that is $94,800. A price return to this level would put the entire bullish structure that has been in place since the recovery rally in April in jeopardy.
In order to keep Bitcoin from losing $100,000, the chart needs new conviction in addition to sideways indecision. The descending resistance would be broken by a clear push above $112,000 on high volume, which would pave the way to a genuine trend continuation. This market is moving sideways without any strength or urgency, and there is a growing risk that the path of least resistance may be lower. Until that time comes, this is no man\'s land.