Bitcoin is attempting to recover after a sharp selloff, but its rebound remains limited as the crypto tycoon approaches a key resistance zone.
Despite rallying and recovering key levels over the past 24 hours, Bitcoin still lacks strong investor support, leaving its recovery fragile heading into this week.
Bitcoin faces weak demand
Institutional investor interest in spot Bitcoin ETFs remains low. According to data from Farside, the Spot BTC ETF recorded inflows of just $8.5 million on Monday, followed by outflows of $61.6 million on the same day. This occurred despite improvements in Bitcoin’s price, highlighting the disconnect between price trends and investor confidence.
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ETF participation is often used as a proxy for institutional sentiment, but current trends indicate more skepticism than trust. Without stronger inflows, Bitcoin may have limited support from large buyers, making a sustained recovery more difficult.
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On-chain data also reflects weak fundamental activity. Relative activity between small and large entities has decreased, indicating a decline in engagement across the network. When participation declines simultaneously across these cohorts, it often indicates declining demand and weakening market power.
This decline is weighing on Bitcoin’s price momentum. Reduced interaction from whales and retail entities likewise suppresses the essential purchasing pressure essential to supporting higher valuations. Until this movement picks up steam, Bitcoin may struggle to muster the strength needed to break through significant resistance.
BTC price needs to break through this resistance level to end the downtrend
At the time of writing, Bitcoin price is trading at $92,939 and has successfully broken through the resistance level at $91,521. The next major target is $95,000, the level that will determine whether Bitcoin can move from the recovery to a meaningful uptrend.
If demand does not improve and Bitcoin faces a rejection at $95,000, the price could fall below $91,521 and then below $89,800. A fall to $86,822 remains possible, which would erase recent gains and extend a five-week downtrend.
Meanwhile, Bitcoin remains capped by a broad downtrend that started five weeks ago. To break this pattern, Bitcoin will need to move towards support above $95,000. If this is achieved, it would open the way to $98,000 and signal new momentum, invalidating the bearish outlook.
