In recent trading periods, Bitcoin price reached as high as $98k, indicating a chance of upward price movement.
The coin then retraced to $96,611.89 having dropped below the $97K support level.
The cryptocurrency faces unpredictable price movements because a descending trendline presents resistance and demand seems to be diminishing.
Bitcoin Price Faces Resistance at Key Trendline
Bitcoin price surpassing $98,000 recently had revived the positive outlook of both traders and investors.
The breaking of this essential price threshold created speculation about when Bitcoin would achieve its next significant target of $100,000.
However current price movements do not seem to be keeping up the the high expectations that had built up over the last couple of days.
Crypto analyst Ali Martinez observed Bitcoin struggling with major resistance along an hourly descending trendline despite its recent price increases.
In addtion, Martinez noted several failed upward attempts by Bitcoin against this descending trendline with three consecutive rejections.
The current upward momentum of Bitcoin remains at risk because the repeated failures to break through resistance barriers could stop price gains.
A price failure to surpass this trendline would trigger a market correction that would prevent Bitcoin from reaching $100,000.
Accumulation Trend Score Indicates Weak Investor Activity
More so, the Accumulation Trend Score demonstrates declining purchase activity from major investors at present.
Ali Martinez shared data that demonstrates that major market participants have stopped investing in Bitcoin at this point which normally signals a bearish outlook.
Institutional investor Bitcoin accumulation reached its peak between October 2024 and January 2025 before institutions started pulling out of the market.
Consequently, the present limited accumulation activities contrast strongly with what was observed during earlier stages of the market cycle.
Both major investment entities and retail buyers display declining interest in Bitcoin acquisition at present.
The reduced market demand increases pressure on Bitcoin prices thus decreasing its capacity to maintain new gain levels.
The decreased intense buying by investors may create additional challenges for Bitcoin to surpass important price levels especially when reaching the $100,000 threshold.
Bitcoin Apparent Demand Declines
Furthermore, CryptoQuant data indicates Bitcoin apparent market demand decreased significantly from its peak of 279,000 in December 2024 to reach only 70,000 in January 2025.
Decreasing demand for Bitcoin affects its market price substantially. Slowing market demand weakens both trading volume and price movement and indicates that the market will likely experience price consolidation.
Investors are already experiencing higher levels of economic volatility and the effects of inflation concerns, leading to a decline in market demand.
In this regard, the lack of enough retail buyer interest to support the price growth of the market is exacerbated by declining Bitcoin accumulation by major investors.
Meanwhile, according to JPMorgan, institutional investors are cashing in profits because of a lack of positive market catalysts.
The firm noted that pro-crypto U.S. initiatives would only affect the market in the second half of 2025.
Bitcoin along with Ethereum faced “momentum decay” because funds with momentum-driven strategies began to decrease their portfolio exposure while Ethereum’s momentum indicators moved into a negative trend.
At press time, Bitcoin price was at $96,621.42, down 0.76%. It faces resistance around $100K, and has fallen below key support at $97.45K.
A breakout above $100K could target $102K, but it remains to be seen if it can sustain the momentum, and emerge from the current slump.
The post What’s Next For Bitcoin Price As Demand Dips Below Key Levels? appeared first on The Coin Republic.
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