Bitcoin Price Consolidates Above $107,000, But Bearish Twist Looms

Current market data shows that the price of Bitcoin price is holding steady above $107,000. This follows a volatile stretch that saw the asset reach a new all-time high of $111,900.

While the price remains strong on the surface, activity under the hood tells a different story.

On-chain data shows declining retail participation and weak network signals, casting doubt on how long this price strength can last.

Network Activity Weak Despite Bitcoin Price Strength

It is worth noting that the Bitcoin price rebounded from $75,000 to $111,000 in months, giving the market a reason to celebrate.

However, the Bitcoin blockchain tells a quieter story. Active addresses have not responded to the price rally.

Notably, active wallets are those that send or receive coins, a basic signal of user activity.

It is worth noting that after falling during the drop to $75,000, the BTC USD price remained low even as it pushed higher.

The network activity index, which combines several on-chain metrics, including total UTXOs, transaction count, and block size, is also trending lower.

This means the actual usage of the Bitcoin network has not mirrored the excitement seen on price charts per CryptoQuant data.

Typically, strong price movements are accompanied by surging demand. Right now, that connection is missing.

Additionally, the mempool, where pending transactions await confirmation, is nearly empty.

Based on this outlook, this might seem positive at first, but in this context, it points to lower BTC USD demand.

It is essential to add that technologies like SegWit or batching could reduce mempool pressure.

Yet, when they occur alongside falling address activity and network volume, the overall signal turns bearish.

Retail Investors Are Sitting Out

Observing current market trends, low participation from retail investors is becoming increasingly evident.

Despite the strong market performance, most of the current trading comes from institutional channels or short-term speculation in futures markets.

On-chain flows and social sentiment show that average investors are not driving the Bitcoin price trend.

Glassnode data confirms that funding rates and the 3-month futures basis are falling.

These usually signal how eager traders are to go long—a drop in both points to a more cautious stance, even among aggressive players.

Even with steady inflows into Bitcoin ETFs, traders are playing a defensive strategy.

Per the update, they are managing risk and preserving capital rather than chasing gains.

This defensive behavior aligns with the recent decline in open interest and a corresponding decrease in BTC USD on-chain volumes.

Additionally, market sentiment is split across the board, indicating hesitation rather than conviction.

As of the time of writing, CoinMarketCap data indicates that Bitcoin price was trading at $107,178.91, up by 3.16% in 24 hours.

Bearish BTC USD Setups Forming in the Background

It is worth mentioning that the market is also showing signs of a classic short squeeze setup.

With shorts increasing and macro risk stabilizing for now, there is a possibility of a sudden upside move.

Still, this remains speculative. For now, the bearish tone lingers beneath the Bitcoin price.

The bigger concern is the absence of fundamental support.

If retail investors remain on the sidelines and network usage continues to slide, this rally may lack staying power.

External factors, such as interest rates or economic data, can swing momentum in either direction. For now, caution is warranted as signals remain mixed.

In related news, Bitcoin critic Peter Schiff said Bitcoin’s low popularity in Europe threatens its price movement back to its all-time high.

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