Is Bitcoin Facing Trouble? Here Are 3 Major Warning Signs

As the consolidation process of bitcoin continues, some on-chain metrics indicate that its stagnation may soon come to an end, but they present a more pessimistic outlook on its future volatility. Some of the most concerning factors come from the increasing number of investors taking profits and the apparent decline in demand. Warning Signs Appear The main cryptocurrency has been stuck in a tight trading range at around $107,000 for over a week now, since it slid below $100,000 during the darkest hours of the Israel-Iran war. Its breakthrough efforts have been halted at $108,000 and $109,000, and market analysts are now exploring the potential for another retracement. This may be due to several factors threatening the future price trajectory of the asset. First, Glassnode reports that BTC investors have begun to take profits significantly, although it is still far from the peak recorded at the end of 2024.

Additionally, the famous cryptocurrency analyst Ali Martinez pointed out that the apparent demand has weakened recently, as the figures have fallen to -37,000 BTC. This is a clear indication of a "sharp decline in buying demand." Finally, Martinez noted the total capital flowing into the industry, which has also decreased significantly.

In addition to the factors mentioned above that may lead to BTC price adjustments, CryptoPotato reported another concerning sign regarding this asset. Network activity has sharply declined in recent months, which means fewer people are interacting with it. Overall, such occasions are associated with price falls. However, BTC has managed to overcome the recent odds as it recovers from the drop below $75,000, although the metrics remain low. Additionally, reports suggest that the asset's price has surged to a new all-time high and the ability to maintain above $100,000 is due to larger investors holding more stakes in the market.