With Bitcoin price is still in the red and price trading sideways all week, investor sentiment has weakened and demand is slowing.
Summary
- Bitcoin’s price has been hovering around $113,000 for the past week as the market struggles to find momentum.
- The cryptocurrency has lost approximately 8% over the week and is now 8.4% below its all-time high of $124,128.
- CryptoQuant analysis shows Bitcoin’s struggles are driven by reduced demand and increased profit-taking.
Bitcoin (BTC) price is trading at $113,770 as of press time, continuing its week-long hover around this price level as it struggles to make any decisive move. While the asset is up a minor 0.02% over the past 24 hours, its performance over the past few days has been flat, posting an approximate 8% loss on the week.
The extended downturn places BTC 8.4% below its $124,128 all-time high reached earlier this month, turning sentiment bearish and raising questions about its short-term direction.
CoinGlass data shows open interest in Bitcoin has slipped 0.36% to $37.9 billion over the past 24 hours, with most of the decline coming from perpetual futures. At the same time, 24-hour trading volume fell 7.32% to $66.41 billion, reflecting cooling market activity.
Falling volume alongside a drop in open interest suggests traders are trimming positions, indicating that the market in a cautious pause.
Bitcoin demand slows as profit-taking continues
The weakness in Bitcoin’s price comes amid a broader trend of falling demand and ongoing profit-taking. According to an Aug. 20 CryptoQuant analysis, the amount of Bitcoin being accumulated by the market has dropped sharply in recent months, down two-thirds from 174,000 BTC in July to 59,000 BTC currently.
Institutional buying is also slowing. Bitcoin exchange-traded funds‘ net purchases over the past month is at a modest 11,000 BTC, the lowest since April. Similarly, corporate accumulation by major holders has slowed, with buying by entities like Strategy falling from 171,000 BTC in November 2024 to 27,000 BTC in the last 30 days.
Meanwhile, profit-taking is ramping up among short and long-term investors. BTC holders have realized roughly $74 billion in net profits since July 4, alongside another $2 billion taken by new whale investors. Such large-scale profit-taking adds downward pressure on prices, increasing short-term volatility.
CryptoQuant’s Bull Score now shows the market moving from “Extra Bullish” to a “Bullish Cooldown” phase, signaling that while the overall market set up remains positive, strong momentum has faded.
However, strong downside risk appears limited for now. The analysis added that BTC could find support around $110K, as holders are usually less likely to sell heavily around this price point, which can help prevent a sharper decline.
Still, the market remains cautious. If demand fails to return and profit-taking continues, Bitcoin may struggle to regain momentum, and the current bearish signals will need to flip positive before strong upward moves can resume.
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