$BTC
BTCUSD
price action has been volatile lately. The leading cryptocurrency has fallen from an all-time high of $108,384 to a recent low of $91,350
The significant decline in Bitcoin
BTCUSD
is due to a group of key investors retreating. This has reduced short-term demand and created bearish pressure on the price.
Subscribe to our newsletter and get the latest news on what's happening in the world of Web3, straight to your inbox!
Bitcoin Investors Are Retreating
The Realized Cap by Age metric shows a worrying trend in Bitcoin demand. Short-term demand, represented by capital that has entered the market over the past seven days, has collapsed by 66% over the past month. This hot capital is currently valued at $32 billion, reflecting a sharp decline in short-term inflows.
This drop is critical as it highlights the decline in confidence among short-term investors, who are often the driving force behind BTC. The lack of new capital from these investors reflects growing skepticism. This prevents Bitcoin from sustainably holding above key levels.
Bitcoin Realized Cap By Age
The Exchange Volume Momentum metric is also approaching a critical bearish crossover. The 30-day moving average is on the verge of falling below the 365-day moving average, signaling continued weakness in capital inflows.
Short-term holders, known for their aggressive buying and selling, are now retreating. Their reduced activity reflects the current slowdown in demand and heightens concerns about BTC’s ability to recover in the short term. The cautious tone in this category could prevent Bitcoin from recovering above higher price levels.
Bitcoin Exchange Volume Momentum
BTC Forecast: Paving the Way to $100,000
BTC price has recovered from $92,600 to turn $93,625 into a key support level. However, the cryptocurrency is struggling to maintain this momentum amid weakening short-term demand and bearish indicators.
If these factors persist, Bitcoin could lose support at $93,625 again. This would lead to a possible price drop to $89,800.
