Journalist
Posted:
Bitcoin has spent much of the past month without a clear trend on the price charts.
A recent AMBCrypto report found that this was likely a consolidation phase, and accumulator addresses were adding BTC to their holdings.
Source: BTC/USDT on TradingView
This demand has not been enough to push prices back above the short-term support zone at $94,000.
Even though this resistance has been tested several times, Bitcoin [BTC] has tended to fall back to $89,000-$90,000 over the past two weeks.
The longer-term prospects were slightly more hopeful. Liquidity signals started to turn bullish. Global M2 hit a record high, which could set the stage for a crypto boom in 2026.
The Founder and CEO of Alpharactal observed in a message on X that Bitcoin provided important support in the chain.
The realized cap momentum metric, which tracks the rate of change in BTC’s realized cap, stood at multi-month support even as prices consolidated below $94,000. Why aren’t we seeing an outbreak yet?
Research into the lack of demand for Bitcoin
The apparent demand for Bitcoin weighs the new demand against the supply of newly mined BTC and the supply of long-term holders. The statistic has been negative since the end of November.
For a brief period in November, apparent demand appeared to grow, but this did not last long.
The realized gains and losses for on-chain Bitcoin, held between 1 and 3 months, help track market sentiment.
It also eases the flow of capital into or out of the market. Over the past two months, the benchmark has shown steady losses for holders.
The drop to $84,000 recently dropped the profit/loss margin to its lowest level since July 2022. It indicated that investors were facing large losses and declining market conditions.
Conditions were bleak for the bulls. The price action reflected the difficulties buyers were experiencing due to incessant selling. A move back above $100,000 would require significant capital inflows, which we are not currently seeing.
Final thoughts
- Although Bitcoin tested the local resistance of $94k several times and had a key support in the chain, it was unable to recover.
- The statistics provided evidence of a lack of demand. This needs to change to keep the hope of a Bitcoin recovery alive.