Bitcoin is trading at crucial levels below the $100K mark, facing a critical test as bulls struggle to push the price above key supply levels. While the market remains structurally bullish as long as BTC holds the $90K mark, short-term price direction remains uncertain. Investors are looking for confirmation of the next major move, with BTC consolidating within a tight range.
Market sentiment remains mixed, as some analysts expect Bitcoin to regain momentum and surge to new all-time highs, while others see a potential correction if buying pressure weakens. CryptoQuant data reveals that after Bitcoin’s price peak at $107K, the volume of active addresses on the network dropped below the annual average, reaching 1.1 million active addresses. This decline in network activity raises concerns about demand levels and whether BTC has enough momentum to sustain its uptrend.
The coming days will be crucial in determining Bitcoin’s short-term direction. Bulls must reclaim the $100K mark to fuel another rally, while losing key support levels could trigger a larger pullback. With volatility increasing and market uncertainty growing, all eyes are on Bitcoin’s next move as traders prepare for a decisive breakout or a potential sell-off.
Bitcoin Demand Dries Up At Current Levels
Bitcoin is currently consolidating below its all-time high, and a positive outlook suggests it is preparing for a massive breakout. Market speculation is building, with analysts claiming that this recent consolidation phase is the calm before the storm. Despite short-term uncertainty, Bitcoin maintains a strong long-term bullish structure, with bulls defending key support levels while waiting for confirmation of the next major move.
CryptoQuant analyst Axel Adler shared an analysis on X, revealing that after Bitcoin’s price peaked at $107K, the volume of active addresses on the network dropped below the annual average, reaching 1.1 million active addresses. This decline in network activity raises questions about market demand.
Lower active addresses may indicate fading demand at current levels, suggesting that BTC could struggle to push higher without renewed buying interest. On the other hand, they could signal a period of accumulation before Bitcoin searches for liquidity at higher price levels.
Historically, declines in active addresses during consolidation phases have often preceded large price movements as traders reposition themselves ahead of a breakout. If BTC reclaims the $100K mark, a surge into price discovery is expected. However, if demand remains weak, Bitcoin could first retest lower support levels before making its next major move.
BTC Price Action Details
Bitcoin is trading at $96,300 after two weeks of uncertainty and selling pressure below the $100K level. The market remains indecisive as bulls struggle to reclaim key resistance levels while bears fail to push the price into lower demand. Investors are growing impatient, as price action continues to lack confirmation for either a breakout or a breakdown.
Bulls must hold current prices and push above the $98K and $100K levels to regain momentum and confirm a breakout into price discovery. A successful reclaim of these levels could trigger a rapid move toward all-time highs, with renewed demand fueling further gains. However, continued failure to break above $100K could lead to prolonged consolidation or, worse, a potential breakdown.
If BTC loses support around the $95K mark, the next critical level to watch is $90K, where strong demand could provide a temporary floor. A break below this level, however, could intensify selling pressure and cause a deeper correction. For now, the market remains in a tight range, and a strong move in either direction will likely set the tone for Bitcoin’s next major trend. Until then, traders are bracing for volatility as BTC hovers near crucial price levels.
Featured image from Dall-E, chart from TradingView
