Since reached a weekly high $ 88,752 on March 24, Bitcoin (BTC) The price has formed a series of lower highs and lower lows in the 1-hour time frame chart.
As the end of the week approaches, the price of Bitcoin failed to break above $ 88,000 resistance, reducing the opportunity for a $ 90,000 retest before the end of the Q1.
Bitcoin 1-hour chart. Source: Cointelegraph/TradingView
What keeps bitcoin under $ 90k?
One major reason for current bitcoin price struggles is to always sell pressure from short -term holders (STH) or investors holding coins for less than 155 days. “The Week On-Chain” newsletter of Glassnode mentioned That the current Bitcoin cycle witnessed a “leading heavy” market where investors who bought BTC at a higher price hold a significant portion of the Bitcoin supply. As a result, STH Cohort has become the main group facing the largest price drawdown since the 30% Bitcoin correction from high time.
In the report, Glassnode’s analysts said,
“The owner’s short-term supply will be held in the loss of surging at a massive 3.4M BTC. This is the largest amount of STH supply in the loss since July 2018.”
The total supply of bitcoin in the loss held by the sths. Source: Glassnode
The sale of pressure faced by short -term holders is reflected in the mark of Bitcoin accumulation accumulation.
Bitcoin’s accumulation of accumulation, a scale that counts the sale pressure, has remained below 0.1 since the BTC price dropped from $ 108,000 to $ 93,000- $ 97,000 range. A mark under 0.5 distribution of signals (sale) instead of accumulation, and a sub-0.1 value highlights intense sale pressure.
Another factor is that Bitcoin struggles to break the $ 90,000 threshold is due to the backdrop of liquidity conditions. Data suggest that onchain transfer volumes drop to $ 5.2 billion daily, a steep 47% decline from the climax during the rally to all time. Similarly, the active address number also reduced by 18%, dropping from 950,000 in November 2024 to 780,000.
At the same time, the Open Interest (OI) in the BTC Futures Market Fall 24% out of $ 71.85 billion to $ 54.65 billion, along with continuous futures funding rates.
Delaying of this deleveraging and liquidity -which has just had 2.5% of the total supply that moves in revenue during correction -limiting market capacity to rally over the past $ 90K because there is not enough purchase of orders to absorb sellers of orders.
Related: Bitcoin Bet Bet Btc prices are not higher than $ 138k in 2025
The new demand for Bitcoin continues to collapse
Glassnode data is also highlighted that the current BTC bull cycle lacks new demand (consumers) entering the market, with heatmap with the basis of distribution (CBD) showing the supply concentration at a higher price level ($ 100k- $ 108k) but no significant flower flow to lower levels to drive a price recovery.
Bitcoin euphoria zone, leading basis for consumer costs. Source: Glassnode
The lack of demand factor is combined with macroeconomic uncertainty, which weakens new investors, as seen on the transition to net capital outflows when 1-week to 1-month basis of STH costs fall under 1-month to 3-month cost basis.
However, glassnode analysts said,
“The flip side of these observations is that the long-term cohort owner still retains a large portion of the network wealth, holding about 40% of the invested value.”
Importantly, these periods of prolonged accumulation can be supply and lead to better conditions for a new demand wave once a stronger climbing is established in the market.
Related: Is Buying Gamestop help with BTC’s Hit $ 200K Hit price?
This article does not contain investment advice or recommendations. Every transfer of investment and trading involves risk, and readers should conduct their own research when deciding.
