Bitcoin Drops Below $100,000 as Demand Slows, Whale Purchases Decrease by 50%

Bitcoin's price has recently fallen below the $100,000 mark, raising concerns among investors and analysts. According to Julio Moreno, head of research at a cryptocurrency analytics firm, the demand for Bitcoin is showing signs of slowing down after a period of rapid growth, with momentum fading as prices approached $112,000. This weakening in demand is evident in both spot markets and the futures market, where investors have started to open new short positions by taking profits.

Moreno noted that Bitcoin purchases made by whales and ETFs have decreased by half, and demand from new investors is also decreasing. If this trend continues, Bitcoin could find support at the $92,000 level, which corresponds to the average cost of investors on the chain. This level is considered a typical support area, usually seen in bull markets. However, if this support is broken, the next important support level is around $81,000, which represents the lower band of the average cost of investors.

The sudden drop in Bitcoin's price has been attributed to various factors, including fears of a broader crypto market crash and uncertainty surrounding regulatory developments. The price of Bitcoin has been hovering around the $100,000 level for some time, with analysts observing that a break below this threshold could trigger further selling pressure. If this occurs, the next support level could be around $95,000, as noted by market observers.

The broader market sentiment remains mixed, with spot and derivatives data suggesting a range-bound price action. Bitcoin has been consolidating in a triangle pattern on the daily chart, with key support levels holding firm. The price has been attempting to stabilize near $106,000, but the resistance at $110,000 has proven to be a significant barrier. The Relative Strength Index (RSI) is currently at a neutral level, indicating balanced momentum.

On the 4-hour chart, Bitcoin has rebounded from a local low of $103,000, leaving a significant pool of liquidity behind. The price is now pushing back into a fair value gap (FVG) in the $106,000 zone, which is acting as a supply barrier. The RSI is trending higher at 55, showing mild bullish momentum, but the bearish trendline overhead still caps any impulsive move. A breakout above the FVG with strong volume could open the path to retest $110,000. However, if sellers defend this area again, we may see a sweep below $103,000, aiming for the $102,000 and even $100,000 liquidation zones.

Spot sentiment analysis indicates a return to aggressive buying dominance, following a long period of neutral and sell pressure. This shift suggests that market buyers are stepping back in with confidence, absorbing sell orders at current prices. Historically, when the Spot Taker CVD flips green after extended red or grey phases, it precedes upward continuation. This renewed spot demand suggests that large buyers are positioning themselves during this range phase. If this behavior continues while the price holds above key supports, it could lead to a strong breakout. However, if the CVD starts to flatten or turn red again without price advancing, it may indicate exhaustion and foreshadow another sweep of downside liquidity or even a full-blown bearish reversal.

The current price action is squeezed between dynamic supports and a persistent supply zone. This phase could precede a significant breakout or breakdown depending on how liquidity behaves in the coming sessions. The 100 and 200-day moving averages are rising and converging for a bullish crossover, indicating the long-term bullish structure remains intact. However, the fact that Bitcoin has been rejected multiple times from the $110,000 area makes that zone a critical decision point. A daily close above it would shift the structure bullish again, while a breakdown below the orange trendline support may accelerate a move toward the lower boundary of the large channel.