Bitcoin Eyes Breakout as Price Stalls Near Key Resistance

• Bitcoin is moving in a tight range, and traders expect a breakout to happen soon.  
• Mining firms are expanding, but smaller miners struggle to compete amid rising costs.
• Investors are watching Bitcoin closely as the market waits for a clear price direction. 

Bitcoin continues trading within a tight range, showing some small amount of movement as the market remains in a consolidation phase. At press time, the coin is trading at $98,387, reflecting a 0.05% increase, while traders anticipate a breakout. Bollinger Bands indicate reduced volatility, suggesting an imminent move in either direction. Meanwhile, slowing hashrate growth in the mining sector is putting pressure on smaller operators.

BTC Price Action Remains Stagnant Amid Reduced Volatility

Bitcoin has maintained a narrow trading range, lacking movement from last week. The Bollinger Bands (BB) signal compression, with the upper band at $99,728 and the lower band at $94,603, highlights declining volatility. Historically, such a squeeze often leads to a breakout, either upward or downward.

Technical analysis reveals a symmetrical triangle pattern, reinforcing the likelihood of a decisive move. Immediate resistance is seen near $99,700, while key support holds at $94,600. The MACD line is above the signal line, indicating bullish momentum with increased buying pressure, along with a positive histogram reading of 180.

The Bitcoin consolidation phase has significantly impacted altcoins, keeping them in a sideways trend. Speculating from previous data, BTC’s trend dictates altcoin performance, and the current stagnation aligns with broader market conditions. Investors and traders are closely monitoring for a catalyst that could determine the next price trajectory. 

Related: Crypto Market Awaits Moves as BTC and Altcoins Hold Steady

Bitcoin Mining Hashrate Growth Slows

Recent analysis from TheMinerMag highlights a slowdown in the token’s hashrate growth after months of increases. For the first time since September, the network’s transaction difficulty decreased. This suggests that while publicly traded mining firms continue expanding, the growth is insufficient to offset the exit of smaller mining operators.

BTC mining is directly tied to its hashrate, which measures the computational power used to mine BTC. As more miners join the network, the mining difficulty increases. A higher hashrate enhances network security, making it more resistant to attacks. However, smaller mining firms are struggling due to recent halvings, which have reduced mining rewards.

Publicly traded firms held 99,000 BTC worth $9.7B in January as its mining revenue remained equally stable at $1.4 billion. Marathon Digital remains the industry leader with a realized hashrate of 41.65 EH/s, but competition among top firms is intensifying. The 30 EH/s group is pulling ahead, widening the gap from the 10 EH/s tier.

What’s Next For The Token?

With reduced volatility and narrowing Bollinger Bands, traders await a breakout that could shape BTC’s next move. Will Bitcoin reclaim $100,000, or is there a correction ahead? The market remains on edge as investors anticipate the next price shift.

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