Bitcoin Faces Weak Retail Demand As Addresses Holding 0-1 BTC Decline – Expert Reports

Bitcoin has experienced massive price swings since the weekend, dropping to $91K before staging a strong recovery above $100K. However, BTC now sits around $98K, struggling to maintain momentum amid ongoing trade war fears that have shaken global markets. The uncertainty surrounding these geopolitical developments has played a significant role in Bitcoin’s volatile performance, and it looks like this trend may continue in the coming weeks.

Despite Bitcoin’s strong recovery from the $91K low, retail investors don’t seem eager to buy BTC yet. Key on-chain data from Santiment reveals that the number of BTC addresses holding 0 to 1 BTC continues to decline, suggesting that smaller investors are either hesitant to re-enter the market or taking profits amid the recent price swings.

Historically, retail participation has been a significant catalyst for Bitcoin’s bull cycles, as increased adoption and buying pressure often fuel higher prices. The current decline in small-holder addresses raises questions about whether Bitcoin’s rally can sustain itself without broader retail support. Analysts are now watching closely to see if BTC can reclaim key resistance levels or if further downside is on the horizon.

Bitcoin Consolidates As Retail Remains Off The Market

Bitcoin is currently in a consolidation phase below its all-time high (ATH), driven by volatility, uncertainty, and speculation. The price has been ranging between ATH at $109K and the $90K level, creating fear among investors who suspect that the bull cycle top may already be in. With Bitcoin failing to reclaim ATH in recent days, some traders believe a deeper correction is coming.

However, key on-chain data from Santiment, shared by Ali Martinez on X, suggests that retail investors are still on the sidelines. The number of BTC addresses holding between 0 to 1 BTC continues to decline, showing that smaller investors have not been accumulating BTC during this phase.

Historically, retail participation tends to surge when BTC prices begin their parabolic moves, meaning that Bitcoin may still have room for growth before reaching its final peak.

The current lack of retail interest contrasts with previous bull cycles, where smaller investors rushed in at higher prices, often marking the later stages of a rally. If retail demand picks up, BTC could see strong buying pressure that might fuel another leg up into price discovery. For now, Bitcoin’s consolidation below ATH remains a crucial phase, with key levels defining the market’s next move.

Bitcoin Price Holds Above $98K: Bulls Eye $100K Break

Bitcoin is currently trading at $98,200, maintaining its position above the crucial $98K level for the past few days. This support zone is key for sustaining bullish momentum, as holding above it signals short-term strength and increases the likelihood of a move above all-time highs (ATH).

For bulls to take control, reclaiming the $100K level is the most important objective at the moment. A successful push above $100K and holding it as support would likely trigger a strong rally into price discovery, setting BTC up for a run toward new highs.

However, failure to break and hold $100K could signal weakness and open the door for another correction. In this case, BTC could retest lower demand zones between $95K and $90K, where buyers must step in to prevent further downside.

Market sentiment remains cautiously optimistic, but the next major move will depend on Bitcoin’s ability to solidify support above $100K. If bulls successfully reclaim this level, a breakout into new highs becomes increasingly likely. For now, all eyes remain on BTC’s price action as it tests key levels in this critical consolidation phase.

Featured image from Dall-E, chart from TradingView