Bitcoin price compresses between key EMAs as volatility fades
Bitcoin compresses between 20-day and 50-day EMA
Bitcoin price continues to range tightly between key exponential moving averages, compressing within the 20-day EMA at $105,700 and the 50-day EMA at $103,200.
This range has narrowed daily, reflecting a decrease in volatility.
- Bitcoin compresses between 20-day and 50-day EMA for a third day
- Falling open interest shows market-wide deleveraging continues
- Neutral sentiment and low volume signal indecision around $104,900
Friday's price action, so far limited within the prior day’s range and currently priced around $104,900 in the European session, marks a third consecutive day of limited expansion. Volume on Binance has trended lower across the past days, confirming that market participants are hesitant to commit in either direction.
BTC price dynamics (Feb - June 2025). Source: TradingView
This stagnation comes against the backdrop of macro uncertainty, particularly following the Federal Reserve’s decision to hold interest rates steady. The lack of new direction has weighed on broader sentiment, pushing the Crypto Fear & Greed Index down to 54, indicating a shift to Neutral after several weeks in Greed.
Bitcoin volume drops and sentiment stays neutral amid Fed stance
The most telling development, however, lies in the derivatives market. Binance open interest has been steadily falling, forming lower lows even as price hovers within a stable range. This divergence points to progressive deleveraging. Traders appear to be closing positions instead of speculating further, a possible reaction to the Federal Reserve’s tone that offers little clarity on near-term monetary easing.
A key area that has come into focus is the $103,500 - $104,000 price range, which is absorbing sell pressure. Data confirms this as a liquidity pocket, where long positions have been consistently liquidated. The clear dominance of long liquidations over shorts implies that late entrants chasing the recent move upwards have been flushed out.
From a broader perspective, the compression of daily ranges, declining open interest, and neutral sentiment combine to suggest a market waiting for a decisive catalyst. Whether Bitcoin breaks above the 20-day EMA or falls below the 50-day EMA, the resolution of this tight range is likely to determine the next major directional move. Until then, Bitcoin appears stuck in anticipation, straddling key technical zones as traders pull back from leveraged bets.
Bitcoin stayed range-bound as weakening volume and RSI showed a lack of conviction. Short-term EMAs boxed price action tightly near $104,700 as bulls and bears paused.
