Bitcoin Hits a Wall! Why the Bull Can’t Break Free from $104K Yet

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Bitcoin, the rebellious child of the financial world, decided to throw a little party this week. It soared above $104,000, marking a nearly 10% gain in a matter of days. But just when everyone thought it was going to break free and reach for the stars, it hit a wall. Upward momentum? Gone. It’s like watching someone try to run but they’ve got a hundred-pound weight tied to their legs. The price is stuck, folks, and it’s not moving much in the last few days.

As of now, Bitcoin’s chilling at $103,663. Not much to brag about, right? A modest 1.7% increase over the past 24 hours, which, let’s face it, doesn’t really scream ‘bull market’ excitement. Darkfost, one of CryptoQuant’s top analysts, decided to share his two cents on why this market is stagnating. Spoiler alert: It’s the derivatives market, everyone’s favorite sneaky villain.

Derivatives Market Kicking Bitcoin in the Knees

According to Darkfost’s cryptic tweet, the slowdown in Bitcoin’s price is being fueled by the derivatives market. This isn’t just some random market whim. No, this is the result of the cumulative net taker volume—a fancy term that tracks the net volume of market orders—sitting comfortably in the negative since Bitcoin passed the psychological $100,000 mark.

There are way more people selling (shorting) than buying (longing), which is basically like trying to fill a leaky bucket. No matter how much you try, it just doesn’t stay full. Net taker volume, or “the trader mood gauge,” is in the negative, meaning traders are betting that Bitcoin is going down. And as you know, the market loves to prove people wrong. A classic case of “they said it wouldn’t last, so let’s make them eat their words.”

The main reason why BTC is currently stuck at these levels comes from the derivatives market.

The cumulative net taker volume has mostly remained in negative territory ever since BTC climbed back above the psychological $100 000 level.

– What does this mean ?

— Darkfost (@Darkfost_Coc) May 16, 2025

Darkfost highlighted that traders are increasingly doubtful about Bitcoin’s short-term ability to break new records. Sure, the long-term outlook is still bright, but the uncertainty in the derivatives market is creating some nervousness. And in the world of crypto, nervousness is like a magnet for volatility.

“It reflects growing doubt among traders regarding Bitcoin’s ability to hit new highs soon,” Darkfost said. “In this environment, the market loves to prove them wrong.” So, Bitcoin’s rally has slowed, but it’s still lingering near its January high. It’s like watching a cat eyeing a laser pointer but just not quite pouncing yet. Will it make the leap, or will it stay on the sidelines? Time will tell.

Bitcoin’s Chart Says ‘Bullish’… Maybe?

But wait, hold your horses! Not everyone is ready to give up on Bitcoin’s bullish run just yet. Enter technical analyst Javon Marks, who seems to think that Bitcoin is still sitting pretty. Marks pointed to a classic bull flag pattern, which—if you’ve been around long enough—can mean one thing: Bitcoin might be taking a breather before it surges once again. Think of it like a runner pausing for a breath before crossing the finish line.

“Bitcoin looks to be bull flagging right under all-time highs. A breakout can send it above,” Marks wrote. If this plays out as expected, we might be in for a wild ride. And while Bitcoin is pausing, altcoins seem to be following the same rhythm as previous surges in 2017 and 2021. Could we be on the edge of another altcoin rally? Grab your popcorn, folks, because this could get interesting.

Altcoins look to be moving similarly and right on track as it did in the 2017 and 2021 surges.

The next phase looks to be where #Altcoins deliver the green light, or in other words push in their most bullish phases.

This can SEND ALTS MUCH HIGHER, FAST!

— JAVONMARKS (@JavonTM1) May 16, 2025

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2025-05-17 07:23