Analysts Caution That Bitcoin’s Rally May Be Losing Strength
Bitcoin may still be trading near record territory, but behind the price action, market specialists say the foundation looks increasingly fragile.
The world’s largest cryptocurrency briefly pressed past $92,000 before slipping back, and the timing — just before the Federal Reserve’s policy update — would normally be blamed on caution. But Bitfinex researchers argue the weakness runs deeper than macro nerves.
Their latest market breakdown describes Bitcoin moving into a phase where liquidity support is thinning and buyers are no longer stepping in with conviction.
When Buying Dries Up, Risks Rise
- Instead of accelerating accumulation, the analysts see sellers dominating flows:
- Spot ETFs are bleeding assets, a sign that large investors are cashing out rather than scaling exposure.
- Exchange volume metrics point to persistent net selling, suggesting traders are offloading coins rather than absorbing supply.
- Roughly seven million BTC sit at unrealized losses, echoing stagnation patterns from the 2022 malaise.
Fresh capital is entering but at weak levels — inflows remain positive but far below the intensity seen during previous bull cycles, reducing momentum for rebounds.
Vulnerability Creeping Back In
According to the report, these signals point to a market that has plateaued without strong support beneath it. Analysts warn that this leaves Bitcoin more reactive to shocks — whether from monetary policy, liquidity conditions, or macro headlines — because the marginal buyer appears to be stepping back.
In their view, the narrative has flipped: instead of asking whether Bitcoin can surge, traders now need to ask whether it has enough demand to absorb volatility if external pressure builds.
Tomorrow’s Fed decision may move the mood — but the cracks analysts describe stem not from speculation about rates, but from a softening market that looks increasingly unstable as the year winds down.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
