Bitcoin’s three-month upward trend may be losing steam as buying pressure weakens and more traders begin taking profits, according to cryptocurrency analysts.
“For the first time in this uptrend, momentum has begun to fade,” noted Bitfinex analysts in a market update published on Monday.
Data from CoinMarketCap shows that since hitting a yearly low of $73,273 on April 9, Bitcoin (BTC) surged nearly 41% to $107,380 at the time of writing.
A Pause in Vertical Acceleration
Analysts caution that order flow data and on-chain indicators suggest Bitcoin may be entering a consolidation phase or forming a local top, rather than continuing its near-vertical acceleration.
“Spot trading volumes have cooled, active buying pressure has weakened, and profit-taking has intensified—particularly among short-term holders who rode the wave up from levels below $80,000,” they added.
ETF Inflows Must Maintain Strength
Bitcoin’s near-term trajectory will largely depend on macroeconomic factors and sustained institutional demand—especially from exchange-traded fund (ETF) inflows.
According to Farside data, U.S. spot Bitcoin ETFs recorded inflows for 14 consecutive trading days starting June 9, with net inflows reaching $4.63 billion as of June 27.
Economist Timothy Peterson described the $2.2 billion inflow from last week as “massive” and expected the trend to continue. “There’s also a 70% probability of positive flows next week, which is typically correlated with upward price pressure,” Peterson stated.
Traders are also closely watching the Federal Reserve’s upcoming interest rate decision on July 30. Lower interest rates generally benefit risk assets like cryptocurrencies. Current market estimates, based on the CME FedWatch Tool, suggest a 19% probability of a rate cut at the July meeting.
Despite near-term uncertainty, analysts emphasize that broader market structure remains strong, with higher-timeframe support levels continuing to hold. “Current data suggests a transitional phase,” they remarked.
Long-Term Holders’ Behavior Key to Continued Growth
Some market participants remain optimistic about Bitcoin’s prospects. Economist Donald Dean commented, “Bitcoin is preparing for an upward breakout from a tight consolidation on volume platforms.”
Charles Edwards, founder of Capriole Investments, recently argued that despite increased institutional and corporate buying, selling pressure from long-term holders has held back Bitcoin’s price growth.
“People wonder why Bitcoin has been stuck near $100,000 despite institutional FOMO,” he noted. “This is largely because long-term holders—Bitcoin veterans—have been offloading positions to Wall Street since the launch of spot Bitcoin ETFs in January 2024.”
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When long-term holders reduce their selling activity, Bitcoin’s upward trend is likely to resume with stronger momentum.
Frequently Asked Questions
Why is Bitcoin’s price consolidating near all-time highs?
Bitcoin is experiencing a cooling-off period after a strong rally. Reduced buying pressure, increased profit-taking, and subdued trading volumes have contributed to the current sideways movement.
How do ETF inflows affect Bitcoin’s price?
ETF inflows represent sustained institutional demand. Continuous inflows typically support higher prices, while outflows or weakening inflows can lead to consolidation or corrections.
What role do long-term holders play in Bitcoin’s market cycles?
Long-term holders often sell during bull markets, realizing profits and creating selling pressure. When they slow down their selling, it allows new institutional demand to drive prices higher more effectively.
Will the Federal Reserve’s interest rate decision impact Bitcoin?
Yes. Lower interest rates tend to boost risk-on assets like Bitcoin. The market will be closely monitoring the Fed’s commentary for signals about future monetary policy.
Is now a good time to invest in Bitcoin?
Market conditions suggest a period of consolidation. Investors should conduct their own research, assess their risk tolerance, and consider dollar-cost averaging as a strategy in volatile markets.
What are the support levels to watch if Bitcoin corrects?
Key support levels include the $90,000–$95,000 zone, which has previously acted as both resistance and support. A break below could see a test of the $80,000 region.
Despite short-term uncertainty, the overall structure of the Bitcoin market remains robust. Investors and traders are advised to stay informed, manage risk appropriately, and focus on longer-term trends rather than daily volatility.