Bitcoin price enters May in tense standoff as accumulation builds in tight range
RSI is trending slightly lower but still holds above neutral
Bitcoin price ended April with a 14% monthly gain, but the last six trading days have seen the price locked in a narrow 1% consolidation range just below March’s high. As May begins, Bitcoin remains stuck in that same band, opening at $94,150 and hovering near $95,100 during the European session. Despite the muted upside, underlying conditions suggest building pressure.
Exchange balances have dropped to a five-year low, but not all of that supply is moving into cold storage. Instead, a significant portion is flowing into institutional custody—ETF structures, fund administrators, and trading infrastructure. One strategy reportedly added 15,000 BTC recently, and sovereign wealth interest is growing.
Much of this BTC is still active, not idle. Some are held passively, while others are deployed in yield platforms, structured products, or used as collateral. This transformation in liquidity explains why BTC hasn’t reacted explosively despite the shrinking exchange supply.
Bitcoin RSI shows mild bullish bias as 50 EMA supports current range base
Technically, the market remains supported. On the 4-hour chart, RSI is trending slightly lower but still holds above neutral, backed by a bullish daily RSI. The rising 50 EMA has now aligned with the base of the consolidation range, providing short-term support and helping lift momentum into the current session.
BTC price dynamics (April - May 2025). Source: TradingView
Meanwhile, trading volume has gradually increased during the six-day range. This rising volume without price breakout suggests a buildup of pressure that could lead to a sharp move in either direction.
In short, the market appears to be in a state of tense equilibrium. Accumulation is active, support is firm, and the next breakout could be significant. Whether it leans bullish or traps late buyers remains the key question.
Bitcoin held near $95.1K after a 28% rally as negative funding rates hinted at cooling momentum. Price stayed range-bound for six days as derivatives pointed to rising bearish pressure.
