Bitcoin Price Struggles Against Key Resistance as Demand Fades

The Bitcoin price bounced past $98,000 on Thursday in a rally attributed to leverage after open interest surged by 7.2% in 24 hours to $2.4 billion.

Bitcoin price soared past $98,000 on Thursday, but a sustained uptrend depends on the price flipping resistance on a descending trendline on the hourly chart. If demand continues to weaken, will this breakout fail and cause another crash?

Bitcoin price bounded past the $98,000 mark on Thursday as the cryptocurrency continues to rally. However, a sustained uptrend depends on the price flipping resistance on a descending trendline on the hourly chart. If demand continues to weaken, this breakout may fail and cause another crash.

After yesterday's pump, BTC is again aiming for this resistance line, and if it fails to break it, it may lead to a downtrend. Past trends suggest that rallies to this resistance level have been met with swift selloffs that have prevented a decisive breakout. If demand continues to weaken, BTC risks further downside.

According to analyst Ali Charts, Bitcoin price has faced three consecutive rejections in its attempt to break out of a descending trendline on the hourly chart. This price action is occurring after a rally that began on Wednesday and saw BTC briefly cross the $99,000 level before closing in on $98,000 at press time.

The consecutive rejections and a significant drop in demand add to the challenges facing Bitcoin and its ability to break past $100,000. A shift in demand has left BTC value today stuck in rangebound trading.

The Accumulation Trend Score, a metric that measures whether large entities are accumulating or selling Bitcoin, currently shows low accumulation. This means that large investors are not aggressively buying Bitcoin at the current price.

A drop in this metric also shows that large entities that were accumulating BTC between October 2024 and January 2025 are no longer buying. Accumulation by large holders has always boded well for Bitcoin price. Therefore, if this cohort is hesitant, it could add to the bearish pressure facing BTC.

Data from CryptoQuant also shows that Bitcoin’s apparent demand growth has declined significantly from 279,000 in December to 70,000. This weak demand is due to inflation fears, economic uncertainty, and concerns around possible selling following FTX repayments.

If there is no shift in demand, a breakout of Bitcoin price past $100,000 may be delayed. However, the Bitcoin Fear and Greed Index has once again flashed “Greed” after the recent rally past $98,000. If this holds, it could lead to more gains.

A Bitcoin price prediction by analyst Budhil Vyas suggests that BTC may rally if it successfully defends key support levels. According to the analyst, if BTC drops to retest the support level zone between $94,000 and $96,000, it will reduce the chance of a dump and lead to a healthy uptrend.

If Bitcoin price retests this support and bounces with strong buy volumes, it faces the next resistance at $99,350. This could lead to a rally to $100,310. However, as outlined above, such gains will happen if demand rises again.

1. Is Bitcoin price stuck in range?

After a strong rally that saw Bitcoin price briefly cross the $99,000 level on Wednesday, the cryptocurrency’s price has stalled and is now trading in a narrow range. This shift in momentum comes as BTC faces resistance at the $98,000 level, with demand also fading.

2. Are institutions still accumulating Bitcoin?

A metric that tracks the accumulation or selling of Bitcoin by large entities, known as the Accumulation Trend Score, currently shows that institutions are no longer aggressively buying Bitcoin at the current price.

This shift in demand is being highlighted by on-chain data from CryptoQuant, which shows that Bitcoin’s apparent demand growth has declined significantly.

3. What is causing weak demand for BTC?

Several factors are contributing to the weak demand for Bitcoin, including inflation fears, economic uncertainty, and concerns around possible selling following FTX repayments.