Bitcoin Drops 1.5% as Demand Falls, Long-Term Holders Accumulate

Bitcoin is currently experiencing a significant decline in demand, which has raised concerns about potential price drops in the near term. This contraction in demand is the most substantial since July 2024 and marks the first instance in over four months, indicating a growing skepticism among investors. The reduced buying interest and increased short-term bearish pressure suggest that market participants are hesitant to enter new positions, which could lead to further drawdowns if demand does not recover soon.

Long-term holders (LTHs) have been accumulating more Bitcoin, with over 107,413 BTC accumulated in the past 30 days. Historically, LTH accumulation signals long-term confidence, but in the short term, it has often preceded periods of price weakness. LTHs tend to accumulate at lower prices and begin distributing during bull runs, suggesting that Bitcoin might still face some downside before a meaningful recovery begins. While long-term accumulation is positive, the immediate impact could be additional short-term volatility and potential price corrections.

Bitcoin’s price, currently at $82,305, is moving within a broadening descending wedge. While this pattern is historically bullish on a macro scale, in the short term, it indicates a higher likelihood of continued downside. BTC may need to test lower support levels before confirming a reversal. Given the market conditions, Bitcoin could lose the crucial $80,000 support level and fall to test $76,741. If broader macroeconomic factors worsen, the decline could extend further, potentially reaching as low as $72,000. Such a scenario would put additional bearish pressure on the crypto market.

However, a shift in investor sentiment could change this trajectory. If accumulation increases at the psychological support of $80,000, Bitcoin may regain bullish momentum. A move past $82,761 would pave the way for BTC to surpass $85,000, eventually reaching $87,041. Such a development would invalidate the bearish outlook and signal renewed market strength.

In summary, Bitcoin’s recent decline in demand poses challenges for its near-term price performance. While long-term holders are accumulating, market sentiment remains cautious, potentially leading to increased volatility. Current price levels around $82,305 face critical support at $80,000. Should investor sentiment