Bitcoin’s price stagnation is causing more psychological damage to traders than a sharp crash could, according to analyst Scott Melker. The cryptocurrency has been trapped in a narrow trading range between approximately $62,353 and $70,000 since early February, leading to a “wear down” of investor conviction through prolonged boredom rather than fear.
Bitcoin briefly touched $70,000 on April 6 before retreating, continuing a two-month period of stagnation where the asset has gone “week after week” without significant movement. Analyst Scott Melker, known as The Wolf of All Streets, described this scenario as more damaging than a sharp drop, noting the “erosion of conviction that comes from watching an asset go nowhere.”
Melker traced the current malaise to a low of $62,353 on February 5, after which little has happened. “At 60 days, we’re barely getting started,” he wrote, warning that “this could stretch another 100 days, or resolve lower and reset the entire process.” He compared the situation to three historical instances of prolonged inactivity following major price events.
These included a 161-day period after BTC’s 2019 run to $14,000, nearly five months pinned between $18,000 and $22,000 after the Luna collapse in 2022, and about 220 days between $25,000 and $30,000 after the 2023 banking crisis rally. “All of these instances dragged on just long enough to wear investors down,” Melker wrote. “Not through fear, but through boredom.”
Recent price data reflects this indecision, with Bitcoin trading near $69,000 after briefly touching $70,000. Its 24-hour range was between $68,300 and $70,250, while its 7-day range sits between $66,000 and $70,000 according to CoinGecko. Melker concluded there is no satisfying way out of this pattern, stating “There’s no telling where the bottom will be, but the consensus still feels like it’s leaning lower.”
