Bitcoin (BTC) is showing signs of weakening momentum following its surge toward an all-time high near $112,000 in May. Recent on-chain and market indicators, analyzed by CryptoQuant, reveal a notable slowdown in accumulation, with demand growth halving to 118,000 BTC over the past 30 days from 228,000 BTC in late May. Significant participants like whales and U.S.-listed ETFs have reduced their Bitcoin purchases by over 50%, while short-term holders have unloaded 800,000 BTC since May 27, signaling a decline in new investor participation.
Price action has seen Bitcoin trading around $104,700, down about 6.5% from its peak, fluctuating between $103,645 and $108,771 in the last week. The Bollinger Bands show narrowing volatility and the relative strength index (RSI) near neutral at 47.75. Traders have locked in profits and increased short positions as Bitcoin failed to stay above $110,000, according to futures data.
Technically, Bitcoin is consolidating above the $100,000 support since early June, with critical support around $103,600 confirmed by moving averages. However, resistance near $108,000 to $109,300 is limiting upward momentum. The market remains balanced but lacks the strong demand typically required to fuel new highs.
Analyst Darkfost highlights macroeconomic uncertainties — including rising US Treasury yields, prolonged Federal Reserve rate hikes, and geopolitical tensions in the Middle East — as factors weighing down on investor sentiment. Although selling pressure is mild and most holders remain steadfast, new buyer inflow has slowed, making a breakout toward new all-time highs unlikely without renewed demand.
If demand continues to falter, Bitcoin could test and potentially break below $101,000 support, with $92,000 identified as the next major cushion based on on-chain realized price metrics. Conversely, a high-volume breakout above $108,000 could re-ignite bullish momentum aiming to retest previous highs near $111,814. Until then, the market is expected to remain in a consolidation phase amid cautious sentiment.