Bitcoin Price Short-Term Outlook: Weak Demand Indicates Possible Drop Below $80,000

Bitcoin has continued its downtrend, presenting a contrasting picture against a generally bullish long-term macro outlook. Despite optimistic projections for the future, current market indicators suggest BTC could be under sustained selling pressure.

Current trading patterns show that investor enthusiasm has not been particularly robust, which is creating additional uncertainty in the cryptocurrency market.

Investor Support is Crucial for Bitcoin

Recently, Bitcoin's demand has encountered severe contraction, the sharpest decline recorded since July 2024. This downturn reflects a noticeable hesitance among investors, resulting in diminished buying interest and exacerbated bearish trends in the short term.

A dwindling demand triggers a reluctance among market participants to initiate new positions. Should this trend continue, Bitcoin may find it challenging to maintain its current valuation levels, escalating the risk of further price declines.

Interestingly, long-term holders (LTHs) have begun shifting towards accumulation, as evidenced by the LTH Net Position Change metric. Over the past month, these long-term investors have added more than 107,413 BTC to their holdings. Historically, LTH accumulation implies confidence in Bitcoin's long-term potential, but it has often preceded short-term price downturns.

LTHs generally buy at lower price points and sell during price surges. This pattern implies that Bitcoin might still endure some downward movement before witnessing a substantive recovery. While the increase in long-term holdings is encouraging, it could also lead to heightened short-term volatility and corrections in price.

Potential for Further Price Decline

Currently, Bitcoin is trading at $82,305 and is situated within a broadening descending wedge. Historically interpreted as a bullish signal over a macro timeframe, this pattern may indicate continued downside in the shorter term. Bitcoin could need to assess lower support levels efficiently to confirm a rebound.

Short-term predictions indicate that Bitcoin could fall below the significant $80,000 support, potentially testing the $76,741 mark. Should the overall economic context deteriorate, a further decline could extend as low as $72,000, which would exert additional bearish pressure on the crypto market.

Nevertheless, an alteration in investor sentiment could influence this trend. If accumulation occurs at the psychological support level of $80,000, Bitcoin might regain its bullish momentum. Surpassing $82,761 could enable BTC to break through $85,000, possibly reaching $87,041, which would negate the current bearish outlook and indicate a restoration of market strength.