TL;DR
- Bitcoin is showing signs of weakening support as demand cools and investor confidence softens, according to a recent Bitfinex Alpha update.
- Long-term holders have increased selling activity, while large institutions remain cautious about entering new positions.
- Analysts warn that without renewed ETF inflows, BTC could retest the 100,000 dollar zone, although pro-crypto observers still view the long-term outlook for digital assets as constructive.
Bitcoin’s latest price movement reflects a market that is waiting for stronger confirmation before entering a new upward phase. The asset has struggled to remain within the 106,000 to 116,000 dollar range, signaling a temporary loss of momentum after last week’s brief climb to 116,000 dollars. Although some traders welcomed that move as a sign of improvement, long-term holders decided to take profits, and major institutional buyers did not show significant participation. This created additional pressure on price action and reduced enthusiasm among retail traders.
Recent on-chain and derivatives data suggest that participants are seeking stability before committing more capital. Options market activity shows a contraction in price expectations, hinting that traders prefer to reduce exposure until macroeconomic conditions become more predictable. The latest Federal Open Market Committee communication did not provide clarity on growth or inflation, encouraging investors to be selective with risk assets.
Traders Show Restraint As Volatility Declines
Market analysts observe that reduced volatility in Bitcoin has historically preceded both strong rebounds and deeper pullbacks. Long-term investors are currently selling close to 104,000 BTC per month, a level not seen since early 2022. This behavior implies a profit-taking phase rather than panic, which aligns with a broader portfolio rebalancing trend among crypto-savvy investors. Short-term holders, meanwhile, are seeing diminishing returns and are less inclined to hold positions for extended periods.
Despite these short-term obstacles, pro-crypto analysts argue that Bitcoin remains fundamentally solid. Hashrate continues near record territory, and global adoption efforts show consistent progress, especially among emerging markets and fintech platforms integrating BTC payments.
Potential Scenarios For The Coming Weeks
Bitcoin is trading below 104,000 dollars at the time of writing. If the asset falls below this support area, analysts anticipate a possible move toward the 100,000 dollar region. A reversal remains possible if demand strengthens and BTC breaks above 116,000 dollars with conviction, supported by increased trading activity and renewed ETF inflows.
