Dry towel on a hot pan is the whole problem right there. That towel soaks up the heat and turns into an insulator, so the pan never gets that hard sear you need. Same thing happens when you crowd the pan or flip too early, you end up steaming the meat instead of browning it. Get a good heavy pan ripping hot, pat the steak bone dry, and use a thin layer of oil with a high smoke point. Leave it alone for a few minutes so a real crust forms, that crust is where all the flavor lives. Do that and you'll wonder why you ever cooked them any other way.