Bitcoin Stuck in Range, Facing Resistance and Weakened Demand

Bitcoin's price has been oscillating within a narrow range, with recent gains failing to break through key resistance levels. Despite a brief rally past $98,000, the price remains stuck in a rangebound market, with weakening demand from both retail and institutional investors.

Analysts have noted that Bitcoin has faced three consecutive rejections in its attempt to break out of a descending trendline. If the price fails to flip this resistance, it may lead to a downtrend. Past trends suggest that rallies to this resistance level have been met with swift selloffs, preventing a decisive breakout. The consecutive rejections and a significant drop in demand add to the challenges facing Bitcoin and its ability to break past $100,000.

A notable shift in demand has left Bitcoin's value stuck in rangebound trading. The Accumulation Trend Score, a metric that measures whether large entities are accumulating or selling Bitcoin, currently paints a bearish picture. This metric shows low accumulation, indicating that large investors are not aggressively buying Bitcoin at the current price. Additionally, data from CryptoQuant shows that Bitcoin's apparent demand growth has declined significantly, stemming from inflation fears, economic uncertainty, and concerns around possible selling following FTX repayments.

Despite the weakened demand, a Bitcoin price prediction by analyst Budhil Vyas suggests that BTC may rally if it successfully defends key support levels. According to the analyst, if Bitcoin drops to retest the support level zone between $94,000 and $96,000, it will reduce the chance of a dump and lead to a healthy uptrend. If Bitcoin price retests this support and bounces with strong buy volumes, it faces the next resistance at $99,350, which could lead to a rally to $100,310. However, such gains will only happen if demand rises again.