Bitcoin’s (BTC) price has struggled to break through the crucial resistance level of $98.7k over the past three weeks, signaling the possibility of a midterm correction. The long-awaited $100k mark may take more time to reach as bullish momentum remains weak.
In addition to the price stagnation, Bitcoin’s daily active address count and whale activity have significantly declined over the past week. Historically, a rebound in these areas is necessary to maintain a bullish trend for Bitcoin in the near term.
From a technical analysis standpoint, Bitcoin price has been forming a potential midterm reversal pattern. According to crypto analyst Ali Martinez, Bitcoin price, in the one-hour time frame, has been forming a head and shoulder (H&S) pattern coupled with bearish divergence on the Relative Strength Index (RSI).
If Bitcoin struggles to surpass $98.7k in the near term, Martinez believes a drop toward $90k is likely. Should the bearish trend continue, Bitcoin could fall to the support level just above $85k before any new bullish momentum kicks in.
On-chain data from IntoTheBlock shows that long-term Bitcoin holders are slowly reducing their balances. Currently, long-term holders hold around 12.45 million BTC, the lowest level since July 2022. However, this decline is smaller compared to previous cycles, suggesting a more cautious approach rather than a full-scale sell-off.
Institutional Demand Shrinks Exchange Supply
As reported by Coinpedia, institutional demand, led by companies like MicroStrategy and BlackRock’s IBIT, is impacting the supply of Bitcoin on centralized exchanges. Over the past four weeks, Bitcoin supply on exchanges has dropped by more than 123k BTC, now sitting around 2.27 million BTC.
This decline suggests that institutional interest is reducing liquidity on exchanges, further contributing to the ongoing consolidation.
Weak bullish momentum and declining daily active addresses are preventing Bitcoin from breaking the $98.7k resistance level.
Institutional buying has reduced Bitcoin supply on exchanges to 2.27M BTC, lowering liquidity and contributing to price consolidation.
As per Coinpedia’s BTC price prediction, 1 BTC could peak at $169,046.
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