Bitcoin is attempting to recover after a sharp decline, but its rebound remains limited as the crypto king approaches a critical resistance zone.
Despite climbing over the past 24 hours and regaining key levels, Bitcoin still lacks strong investor support, leaving its recovery fragile heading into the week.
Bitcoin Faces Weak Demand
Spot Bitcoin ETFs continue to show weak interest from institutional investors. According to Farside data, spot BTC ETFs registered only $8.5 million in inflows on Monday, followed by $61.6 million in outflows the same day. This occurred despite Bitcoin’s price improving, highlighting a disconnect between price action and investor conviction.
ETF participation is often used as a proxy for institutional sentiment, and the current trend points to skepticism rather than confidence. Without tighter inflow momentum, Bitcoin may find limited support from large buyers, making sustained recovery more difficult.
Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here
Bitcoin ETF Flows. Source: Farside
On-chain data also reflects weak fundamental activity. Relative activity among both small and large entities has been declining, signaling reduced engagement across the entire network. When participation drops simultaneously among these cohorts, it often indicates lower demand and weakened market strength.
This reduction is weighing on Bitcoin’s price momentum. Lower interaction from whales and retail entities alike constrains organic buying pressure, which is essential for supporting higher valuations. Until this activity rises, Bitcoin may struggle to gather the strength needed to break major resistances.
Bitcoin Small and Large Entities. Source: Glassnode
BTC Price Needs To Breach This Resistance to End Downtrend
Bitcoin’s price is trading at $92,939 at the time of writing, having successfully breached the $91,521 resistance. The next major target is $95,000, a level that determines whether Bitcoin can shift from recovery to a meaningful uptrend.
If demand does not improve and Bitcoin faces rejection at $95,000, the price could fall back below $91,521 and subsequently drop under $89,800. A decline to $86,822 remains possible, which would erase recent gains and extend the five-week downtrend.
Bitcoin Price Analysis. Source: TradingView
On the other hand, Bitcoin remains capped by the broader downtrend that began five weeks ago. To break this pattern, Bitcoin must flip $95,000 into support. Achieving this would open the path toward $98,000, signaling renewed momentum and invalidating the bearish outlook.
