Bitcoin: Can BTC break $100K after retail interest disappears?
Since reaching $100k nearly three weeks ago, Bitcoin’s [BTC] has struggled to break this barrier. As such, despite the recent price pump, Bitcoin has continued to trade sideways.
At the time of writing, Bitcoin was trading at $97,834, marking a 0.31% decline in the daily charts. Before this dip, BTC had been moving upward, rising by 3.07% in the weekly charts.
This volatility is largely associated with declining retail interest as the market seeks stability while BTC moves from weaker hands to stronger ones.
Bitcoin’s retail investors are gone
According to CryptoQuant, Bitcoin’s retail investors disappeared from the market as soon as they arrived.
Based on the 30-day variation in retail demand, as BTC approached $100k, retail demand variations surged by over 30%.
A surge in retail demand usually signals heightened interest, enthusiasm, or the fear of missing out among smaller investors.
Historically, when retail demand variation exceeds 15%, it often precedes a local top. This is what happened after Bitcoin reached its new ATH of $108k.
After the market reached this level, a correction ensued, followed by a 16% decline in retail demand. Retail investors are known for being emotional reactors and quickly exit their positions during corrections.
A drop below 10% indicates that retail interest has dropped significantly. However, this drop creates a buying opportunity for large and experienced traders.
