- Low onchain demand and volume stopped Bitcoin’s rise to $100K.
- Strong sell pressure between $92K–$95K could push Bitcoin’s price lower.
- Holding above $90K keeps recovery alive, but losing it risks deeper consolidation.
Bitcoin made a strong comeback over the weekend that culminated in tapping $94,000 on its way to $100,000 but was hit by a retrace. This was driven by weak demand which experts say must be restored for another leg up towards this key price.
Crypto on-chain analytics platform CryptoQuant, in an X post, shared an analysis that said on-chain demand for Bitcoin remains weak and must recover if the top crypto asset is to make it to the $100K mark. This weakness has caused a major setback to Bitcoin in its attempt to rise higher after a long time of downtrend.
Bitcoin Faces Next Major Challenge
The crypto market saw a significant recovery in the past few days, led by Bitcoin. The coin broke the future-defining $90,000 level and rose above it successfully for the first time since December last year, even reaching $94,000, which became a local cap in its restricted range. The retracement due to weak on-chain demand is disturbing, but hardly surprising.
At the beginning of the recovery, a big sell wall was highlighted between $92,000 and $95,000. Techgaged reported that the sell wall could become a hindrance to the journey to $100K unless sufficient demand swallowed the potential selloff around the range. The weak demand stopping the rise to $100K could be due to this massive sell wall being triggered as Bitcoin reached the range.
Although there is an increase in demand from institutions, as shown by the Coinbase Bitcoin Premium Index, this demand is clearly not sufficient to counter the big cluster of pending sell orders in Bitcoin’s way. According to CryptoQuant, another move towards $100K remains elusive until a “more intense” recovery kicks in.
The analyst also attributed the weak demand to low trading volume, which he said would improve soon as investors return from the holidays. This could set Bitcoin back on its path of recovery to $100K, which is critical to further upside.
Bitcoin’s Current Condition
At the time of this report, Bitcoin is trading at $91,724, having retraced 1.84% in the last 24 hours, with the price still dropping fast. This means the asset could potentially go lower, but nothing to worry about if the price still holds above $90,000.
If the conditions improve and demand sees a quick recovery, Bitcoin could be back on its way up in no time. However, a break below $90,000 could mean a return to the previous deadly range with no timeline for breaking out.
BTC price today
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What do you think?
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