Bitcoin’s recent pullback may look concerning to some traders, but analyst Axel Adler believes the correction remains contained and key support levels are still holding.
Adler noted that Bitcoin has only dropped about 8% from its local peak, a move he considers relatively modest given the market’s volatility.
He highlighted two critical supports: the 111-day moving average near $109,600 and the realized price for short-term holders at $106,800. Together, these levels form a demand-heavy zone between $107,000 and $110,000, which Adler views as a crucial range where price stabilization and renewed buying could emerge.
The analyst also drew attention to Bitcoin’s “visible demand” metric, which tracks the net change in holdings by younger coins moved within the past year. Positive values suggest growing active circulation, while negative readings imply coins are aging into long-term storage.
Currently, Adler said the indicator is still positive but has slipped to 30,000 BTC, showing demand remains but momentum is cooling. A move closer to zero, he cautioned, would signal weakening participation from newer market entrants.
With Bitcoin hovering above its support range, Adler suggested that traders should keep a close eye on demand dynamics, as the balance between fresh inflows and long-term holding could determine the next major move.
Bitcoin Price Scenarios
Bullish case: If demand strengthens within the $107K–$110K support zone and fresh inflows from short-term holders resume, Bitcoin could rebound quickly toward $120K. A breakout above that level could open the door for a retest of $130K.
Base case: Bitcoin consolidates within the high-demand range, oscillating between $107K and $115K as buyers and sellers balance out. This would allow the market to reset momentum before its next decisive move.
Bearish case: If support at $107K fails and the visible demand metric drops closer to zero, Bitcoin could slide toward $102K–$104K. A deeper correction could test the psychological $100K level, which would mark the strongest downside move since early 2025.
With Bitcoin sitting at a critical crossroads, Adler suggested traders keep a close eye on support levels and on-chain demand, as these signals could dictate whether the market stabilizes or faces further losses.
The information provided in this article is for informational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-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 approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/analyst-warns-bitcoin-demand-cooling-is-100k-next/