Bitcoin’s momentum has stalled as recent data reveals dwindling demand across multiple indicators, igniting concerns of a fresh bearish cycle. From significant outflows in Bitcoin exchange-traded funds to critical on-chain metrics weakening, analysts warn market participants to brace for prolonged downward pressure.
ETF Outflows Weigh on Market Sentiment
Bitcoin-focused exchange-traded products recorded large net redemptions last week, marking the fourth consecutive period of outflows and eroding confidence among institutional investors. The sustained withdrawals suggest diminishing appetite for spot exposure, a stark reversal from the inflows observed earlier in the year.
On-Chain Metrics Point to Fading Demand
On-chain analytics highlight a contraction in active addresses and a downturn in transaction volumes, underscoring reduced user engagement. Miner revenues have dipped as average fees fall and block rewards face downward repricing amid the slump, signaling that both retail and institutional participants are stepping back.
Key Support Levels Collapse
Technically, Bitcoin breached its long-standing support near the $28,000 mark, triggering sell-side momentum and wiping out recent gains. Chart patterns indicate a shift in trend, as moving averages flatten and below-average trading volumes fail to sustain rebounds, leaving BTC vulnerable to further losses.
Bottom Line
With demand fading and bearish signals intensifying, analysts anticipate that Bitcoin could enter a prolonged downturn. Market observers advise prudent risk management as the leading cryptocurrency navigates this challenging environment.