Bitcoin’s price has been bouncing around lately, hovering between $100,000 and $110,000. While a recent dip below $99,000 sparked some worry, a rebound to $106,000 offered a glimmer of hope for Bitcoin bulls. But a closer look at the data reveals some troubling signs.
Is the Bullish Momentum Fading?
Recent on-chain data paints a less rosy picture. Both spot and futures markets are showing signs of fatigue. While the $93,000-$100,000 range has acted as a support level, absorbing previous price drops, the current market volume suggests this support might be weakening.
Investor enthusiasm is cooling off. Profit-taking is on the rise, and on-chain activity is significantly down – a whopping 32% drop in the 7-day moving average of transfer volume! Spot trading volume is also incredibly low at $7.7 billion, a far cry from previous rallies. This lack of buying pressure points to a shift from bullish confidence to cautious uncertainty. Without a surge in demand, a fall below $99,000 becomes a real possibility.
Trouble in the Futures Market Too
The slowdown isn’t just in the spot market; the futures market is also showing signs of cooling down. Open interest (the total number of outstanding contracts) dropped significantly over the weekend, and funding rates have been steadily declining. This suggests that traders are less willing to hold long positions, indicating a lack of confidence in further price increases. This weakening futures market could add to the downward pressure on Bitcoin’s price.
The $93,000 – $100,000 Support Zone Under Threat
While Bitcoin has so far held above the $93,000 – $100,000 support zone, the combination of low spot volume, decreased on-chain activity, and fading futures sentiment puts this support at risk. If holders in this range start selling, it could trigger a significant price drop, potentially pushing Bitcoin below $99,000 again.
At the time of writing, Bitcoin is trading around $107,100. The next few days will be crucial in determining whether this support holds or if we see another price plunge.
