Bitcoin Remains Below $94K: Demand Lacks Momentum for a Recovery

Bitcoin has been trapped below $94,000 for the past month, failing to show a clear upward trend. Accumulator addresses continue to add to their BTC holdings, but this has not been enough to push prices upward. While short-term resistance remains, long-term liquidity signals hint at potential recovery in the coming years.

Key Takeaways

Bitcoin is currently stuck under $94,000, entering a potential consolidation phase.
Despite some accumulation, demand has not been enough to drive prices higher.
Long-term signals show liquidity improvements that could facilitate a rebound in the future.
Current market conditions indicate significant losses for many investors.

Bitcoin stuck below $94K: Demand fails to kickstart a recovery

Bitcoin's Stagnation Below $94K

Bitcoin prices have been hovering below $94,000 for a significant part of the past month, lacking a definitive trend. A recent report from AMBCrypto suggests that this could be a phase of consolidation, with accumulator addresses actively increasing their BTC holdings.

Bitcoin 4-hour Chart Source: BTC/USDT on TradingView

However, this renewed demand hasn’t been sufficient to overcome the short-term resistance just above $94,000. Despite multiple attempts to break through this level, Bitcoin [BTC] has consistently retreated back toward the $89,000-$90,000 range over the past couple of weeks.

The longer-term perspective appears somewhat encouraging, as liquidity signals are beginning to lean bullish. Additionally, the global M2 money supply has reached all-time highs, potentially paving the way for a cryptocurrency resurgence in 2026.

Bitcoin Realized Cap Impulse Source: Joao Wedson on X

The Founder and CEO of Alphractal has noted on X that Bitcoin is currently resting on crucial on-chain support. The realized cap impulse metric, which measures the rate of change of the realized cap, indicates a solid support level even as prices remain below $94,000. The question remains: why hasn’t there been a breakout yet?

Understanding the Decline in Bitcoin Demand

Bitcoin Apparent Demand Source: CryptoQuant

One factor impacting Bitcoin demand is the "apparent demand" metric, which compares new demand against supply from newly mined BTC and from long-term holders. This metric has been negative since late November.

Although there was a brief uptick in apparent demand in November, it proved short-lived.

Bitcoin Onchain Realized PL Source: CryptoQuant

Another indicator, the realized profit and loss for bitcoins held between one and three months, tracks market sentiment and capital flows. Recently, this metric has shown continuous losses for holders, particularly as Bitcoin fell to $84,000, resulting in the profit/loss margin reaching its lowest point since July 2022. This downturn signifies that investors are enduring significant losses in a bear market.

The challenges for buyers are evident, as the ongoing selling pressure complicates potential upward movements. To breach $100,000 again, Bitcoin would need considerable capital inflows, which are currently absent.

Conclusion

In summary, Bitcoin continues to struggle below the $94,000 mark, with signs of accumulation not translating into real momentum. While the long-term view shows some promise based on liquidity improvements, immediate market conditions are challenging for investors. A substantial recovery may require a more significant influx of capital, which is not presently on the horizon.