The cryptocurrency market is witnessing a significant decrease in demand from retail investors for Bitcoin (BTC). While the BTC price fluctuates around 107,349 USD, the amount of BTC transferred in the value range of 0–10,000 USD has decreased by over 10%, the lowest level in the past six months. This decline indicates indecision among individual investors and warns of the possibility that the market may enter an accumulation phase or experience greater volatility in the future. The article provides a detailed analysis of this trend, the impact of Bitcoin whales, as well as the opportunities and risks the market is facing.
Decrease in demand from retail investors affects the Bitcoin market
The decrease in BTC transfer activity among retail transactions reflects the cautious sentiment of individual investors in the current market. According to data from the past 30 days, the amount of BTC transferred in the range of 0–10,000 USD has decreased by over 10%, marking the lowest level in six months. This is a sign of fatigue or lack of confidence in the upward trend from this group of investors. As BTC stabilizes around 107,349 USD, the lack of retail buyer pressure may negatively affect liquidity and short-term growth momentum.
The history of the cryptocurrency market shows that similar downturn phases often lead to Bitcoin experiencing accumulation phases or strong price fluctuations, depending on the intervention of large investors. Currently, the decline in retail investors also indicates an increased role of major institutions and whales in maintaining market direction.
Bitcoin whales return to the market: Strategies and impacts
While retail investors withdraw, Bitcoin whales show signs of increased active involvement. In the past 30 days, over 45,420 BTC worth approximately 4.88 billion USD have been transferred to the Binance exchange – a sign that large investors are preparing to strengthen their positions. This often foreshadows moves preparing for significant price fluctuations in the short term.
Unlike previous accumulation phases, large cash flow from whales coincides with reduced demand from retail investors. This could be a sign that whales are preparing to distribute or are preparing a reaction scenario in response to upcoming market stimuli, creating notable price volatility.
Bitcoin price chart with cup-and-handle pattern and breakout opportunity
The current Bitcoin price structure is forming a typical cup-and-handle technical pattern, with an important resistance zone around 111,897 USD. After a recent correction near 101,506 USD, BTC has recovered and maintained above 107,389 USD. This pattern is seen as a positive signal for BTC's potential price increase if confirmed by a clear breakout and large trading volume.
However, it should be noted that the upcoming trading sessions play a crucial role in determining the next trend of BTC. If it cannot surpass the upper resistance zone, Bitcoin may face profit-taking pressure causing the price to revisit lower support levels, while also dragging cautious sentiment in the market.
Liquidation pressure at the 108,000 USD price level and the potential for a short squeeze
The liquidation heatmap of Binance shows that the price range from 108,000 to 111,000 USD is a densely concentrated area of high-leverage short positions. This area is susceptible to liquidation if the Bitcoin price exceeds this threshold, leading to strong buying pressure erupting quickly. This mass liquidation phenomenon could drive BTC's price up to around 115,000–118,000 USD in a short time.
Conversely, if Bitcoin cannot surpass the above price range, the market may continue in a state of accumulation or sideways movement, creating a sense of hesitation and indecision in both buying and selling sides.
Bitcoin derivatives market: Are investors hedging or waiting?
In parallel with the spot market developments, the Bitcoin derivatives market also witnessed a significant decline in trading activity. The trading volume of futures contracts decreased to about 49.19 billion USD, down nearly 25.9% from before, while Open Interest remained stable at 71.37 billion USD. The options market also fell into a contraction state as trading volume decreased by 28.01%, along with Open Interest decreasing by 3.88%.
This move indicates that investors are shifting to a risk-hedging strategy or temporarily withdrawing to avoid risks before potential fluctuations. This caution often prefigures a preparation phase for strong price breakout periods when confidence and liquidity return.
How will Bitcoin maintain momentum amid noisy signals?
The outlook on Bitcoin's price is quite polarized. Although technical indicators show the formation of a bullish pattern and the presence of whales driving liquidity, the decline in demand from retail investors along with cautious activity in the derivatives market somewhat limits growth momentum. This clearly reflects the caution and waiting of most investors before potential developments.
Confirming a breakout above the 111,000 USD resistance zone, combined with the liquidation effect on short positions, will be the decisive factor for the Bitcoin market to enter a new acceleration phase. Conversely, if this signal does not occur, the price may maintain a sideways state or exhibit unclear fluctuations in the near future.
Source: https://tintucbitcoin.com/bitcoin-giam-ca-voi-day-gia-len/
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