Bitcoin Trades Below $88,000 Amid Declining Retail Investor Demand
Bitcoin (BTC) is trading near $88,000, down nearly 15% from its all-time high of $109,000 earlier this year. This bearish trend has raised concerns among investors.
Bitcoin Retail Investor Demand at a Crossroads
Analysis by CryptoQuant's BilalHuseynov highlights the Retail Investor Demand (RID) indicator, which reflects retail interest and may predict price movements.
- The RID recently encountered resistance around the neutral zone (0%).
- Previous attempts to cross this threshold resulted in Bitcoin's decline to current levels.
- Signs of recovery are emerging as the RID starts to rise again.
- For a positive shift, the RID must exceed the 0% neutral zone.
- Key levels include:
- Negative (-15%): Indicates potential buying opportunities.
- Neutral (0%): Signals possible market movements in either direction.
- Positive (15%): Suggests Bitcoin prices are in a "premium area," typical of bull markets.
Short-Term Indicators Point to Potential Rebound Opportunities
Another analyst, Yonsei Dent, focuses on the Spent Output Profit Ratio (SOPR) for short-term holders. This metric indicates whether these holders are selling at a profit or loss, now showing oversold conditions.
- Applying Bollinger Bands to the STH-SOPR reveals significant historical patterns.
- Past deviations have led to short-term rebounds ranging from +8% to +42%, even during bear markets.
This suggests Bitcoin may be approaching a critical point, with a potential short-term price recovery forthcoming.