Bitcoin is hovering around a critical price level, showing limited downside but a lack of bullish momentum, according to a recent analysis by Cryptoquant researchers. The cryptocurrency is currently trading between $65,000 and $66,000, a crucial price point that could either provide support or indicate a correction. However, several indicators suggest that demand for bitcoin is faltering. Traders are not increasing their holdings, and large holders are only showing modest growth in demand. Additionally, stablecoin liquidity, which is essential for price rallies, has slowed down. The report also highlights the low demand from U.S. investors, which has been negative since late May. Without a significant increase in demand from this key market, a strong bullish move is unlikely. Overall, the market lacks the upward momentum needed for a substantial upward trend. This analysis aligns with the outlook provided by QCP Capital earlier this week. Given the ongoing low demand from traders, whales, and U.S. investors, as well as sluggish stablecoin liquidity, it is expected that the market will remain in its current state in the near term.
