Bitcoin Faces Weak Demand as Support Levels Strain, According to Bitfinex Alpha
Current market conditions reveal fragile support for Bitcoin, with low demand raising concerns among traders.
The largest cryptocurrency by market cap, Bitcoin, has been unable to remain in its consolidation range of $106,000 to $116,000 as buying interest diminishes, as noted by Bitfinex Alpha.
The current price trends indicate a lack of confidence among buyers, contributing to a decline in market sentiment. Last week, Bitcoin briefly surged to $116,000, providing some relief to investors. However, larger holders have started to sell their holdings, while big institutions have not stepped in to buy, leading to price degradation.
Traders Exercise Caution Amid Reduced Price Movements
According to a report from Bitfinex Alpha, the options market is seeing reduced price volatility. This phenomenon suggests that traders are unsure about the crypto’s trajectory and are opting for caution following a significant sell-off on October 10th. The indecisiveness in market actions appears to be influenced by broader economic conditions.
The latest insights from the Federal Open Market Committee (FOMC) have delivered ambiguous messages regarding economic growth and inflation, resulting in a more risk-averse attitude among investors.
Although Bitcoin stays above the support at $106,000, indications show that the market is losing strength. On-chain analytics reveal that long-term investors are selling about 104,000 BTC each month, signaling that traders are opting for profits rather than holding their assets. At the same time, short-term traders are losing confidence as their profit margins decrease, with potential new buyers looking to enter the scene.
BTC Price Nears Drop Towards $100K
Without fresh fund flows from ETFs, Bitcoin’s price may continue to linger within the current range and could potentially drop further, as seen recently. As of this writing, Bitcoin is trading below $104,000 according to data from CoinGecko.
If Bitcoin drops below that threshold, it could further decline towards the $100,000 mark. Conversely, a rise above $116,000 driven by significant market activity could signify the onset of a reversal, coinciding with the arrival of November.
