Bitcoin's Enthusiasm Wanes as Investors Hold Back

Bitcoin's investor interest has been waning, raising concerns about a potential long-term downturn. The Coinbase Premium Index, which reflects U.S. investor sentiment, has dropped below zero, indicating a lack of enthusiasm among American investors at Bitcoin's current price levels. This shift in sentiment is accompanied by negative trends in key market metrics, suggesting caution in the crypto space.

Data from BTC address stats reveals an unsettling picture. New BTC addresses have fallen by 1.02% over the past week, pointing to a slowdown in user adoption. Additionally, the number of active addresses dropped by 4.23%, showing less interaction among users with the network. The total number of zero-balance addresses fell by 7.89% as well. Such a drop in both active and new addresses is a sign that retail participation may be weakening, further dampening bullish expectations.

BTC's transaction statistics revealed varied trends across different transaction amounts. Transactions under $1 surged by 234.89%, suggesting that retail participation is still relatively high. However, larger transactions, particularly those between $100k and $1 million, dropped by 10.27%. This decline in larger transactions could indicate that institutional investors are holding back, which puts additional pressure on Bitcoin's price action. Therefore, while retail activity may be rising, the absence of significant institutional inflows could mean a potentially weaker market.

Bitcoin's price chart underlined a struggle to maintain any upward momentum. At the time of writing, Bitcoin seemed to be testing the critical $96,500-support level. If this level holds, Bitcoin might have a chance to move towards the resistance at $100,000 and potentially, $104,000. However, the Relative Strength Index (RSI) had a reading of 46.03, hinting at a neutral market without overbought or oversold conditions. This indicated that Bitcoin's price may continue to trade sideways unless it decisively breaks through these key resistance levels.

Bitcoin's exchange netflows have seen a positive shift lately, with a 4.02% hike in the last 24 hours. More BTC is flowing off exchanges than into them, indicating that investors are opting to hold rather than sell. This trend typically means lower selling pressure, which could be a sign of