Bitcoin price stagnates due to 66% drop in demand

Bitcoin’s price action has been turbulent, with the leading cryptocurrency falling from an all-time high of $108,384 to a recent low of $91,350.

The large decline was largely due to the decline of a group of major investors, which reduced short-term demand and created downward pressure.

Bitcoin investors are backing down

The measure of maximum achieved by age reveals a worrying trend in Demand for Bitcoin. Short-term demand, represented by capital received in the past seven days, has fallen by 66% over the past month. Currently, this hot capital is worth $32 billion, highlighting a sharp decline in short-term flows into the market.

This decline is crucial, as it highlights waning confidence among short-term participants, often the driving force in Bitcoin’s momentum. The lack of new capital inflows from these investors reflects growing doubts and contributes to Bitcoin’s struggle to maintain support above key levels.

Bitcoin’s overall momentum Also supporting the bearish outlook, with exchange volume momentum approaching a critical bearish crossover. The 30-day moving average stands on the verge of slipping below the 365-day moving average, indicating continued weakness in capital flows.

Short-term holders, known for aggressive buying and selling patterns, are now pulling back. Their lower activity reflects the current slowdown in demand and raises concerns about Bitcoin’s ability to recover in the short term. The cautious approach taken by this group may hinder Bitcoin’s path to regaining higher price levels.

BTC Price Prediction: Chart a path to $100,000

Bitcoin currently It traded near $95,000 after recovering from $92,600 and securing $93,625 as a key support level. However, the cryptocurrency faces challenges in maintaining this momentum amid low short-term demand and bearish macro indicators.

If these factors persist, Bitcoin could lose the $93,625 support again, leading to a potential drop to $89,800. Such a decline would further deepen the drag, testing the resolve of bondholders in the long term.

Conversely, Bitcoin’s immediate target is to break the $95,668 resistance level. Converting this resistance into support can provide the necessary support Bitcoin to recover $100,000. Achieving this milestone would counter current bearish expectations and reignite optimism among investors.