Bitcoin’s price has been struggling to break through the crucial resistance level of $98.7k for the past three weeks, indicating a possible midterm correction. The anticipated milestone of $100k may be delayed as bullish momentum remains weak.
In addition to the price stagnation, Bitcoin’s daily active address count and whale activity have seen a significant decline in the past week. These metrics are vital indicators for maintaining a bullish trend in the near term.
From a technical analysis perspective, Bitcoin’s price seems to be forming a potential midterm reversal pattern. According to crypto analyst Ali Martinez, the one-hour time frame shows a head and shoulders (H&S) pattern with bearish divergence on the Relative Strength Index (RSI). If Bitcoin fails to break above $98.7k soon, Martinez predicts a potential drop towards $90k. A continued bearish trend could see Bitcoin falling to the support level just above $85k before any new bullish momentum emerges.
On-chain data from IntoTheBlock reveals that long-term Bitcoin holders are gradually reducing their balances, currently holding around 12.45 million BTC, the lowest level since July 2022. While this decline is smaller compared to previous cycles, it suggests a cautious approach rather than a massive sell-off.
Institutional demand, spearheaded by companies like MicroStrategy and BlackRock’s IBIT, is affecting the supply of Bitcoin on centralized exchanges. In the last four weeks, Bitcoin supply on exchanges has decreased by more than 123k BTC, now standing at around 2.27 million BTC. This decrease indicates that institutional interest is reducing liquidity on exchanges, contributing to the ongoing consolidation.
Overall, the outlook for Bitcoin’s price remains uncertain as it struggles to break key resistance levels and faces declining on-chain metrics. Traders and investors will closely monitor technical indicators and whale activities to gauge the market sentiment and potential price movements in the coming weeks.