Bitcoin Demand from Retail Remains High at $100K, but Market Veteran Expects Pullback to $95K

Demand for Bitcoin around the pivotal $100,000 psychological mark has been strong among retail investors, but downside risks remain.

As Bitcoin (BTC) struggles to maintain $100,000 amid the recent correction, blockchain analytics firm Glassnode recently called attention to sustained retail interest in Bitcoin at this pivotal psychological price range. 

Bitcoin Retail Demand High at $100K

According to Glassnode, the Shrimp-Crab tier of addresses, comprising retail investors holding up to 1 and 10 BTC respectively, absorbed 1.9 times the newly mined Bitcoin supply in the last month. For context, this equates to a net accumulation of 25,600 BTC. 

However, despite this strong demand among these investors, market analyst Teddy has noted the risks associated with short-term holders (STHs) dominating recent accumulation. 

In a disclosure today, he noted that STHs are typically more reactive to market fluctuations, often selling during minor downturns to secure quick profits. This tendency could increase selling pressure if volatility rises, or market sentiment weakens. 

Notably, this is especially concerning as Glassnode expects extreme volatility in the market soon. In a separate report, Glassnode pointed out that Bitcoin’s current 60-day price range is unusually tight. 

#Bitcoin’s current 60-day price range is very narrow. Historically, periods of tight price ranges often preceded heightened volatility: https://t.co/5DQucqtAeB pic.twitter.com/3P71s7Sw9q

— glassnode (@glassnode) January 23, 2025

Typically, such periods of low volatility have been precursors to significant price movements. Additionally, Glassnode revealed that 20% of the total Bitcoin supply is concentrated within a narrow ±15% range of the current spot price. This clustering of supply could lead to amplified volatility as investor profitability thresholds shift.

Potential BTC Slump to $95K

Amid these on-chain trends, market veteran Michaël van de Poppe discussed Bitcoin’s current market position, as it drops 1.26% today. Despite the pullback over the past two days, Van de Poppe believes Bitcoin’s price could drop further, but only temporarily.

The analyst suggested in a report today that Bitcoin might slump to the $95,000-$97,000 range before resuming its upward trajectory. He believes such a pullback would help take liquidity and strengthen the asset’s foundation for further gains.  

I wouldn’t be surprised to see a correction towards $95-97K on $BTC.

Taking liquidity and continuing the upside from there. pic.twitter.com/WTwOMxm69j

— Michaël van de Poppe (@CryptoMichNL) January 23, 2025

Meanwhile, Bitcoin’s price currently hovers around $102,376, defending the psychological $100,000 mark after reclaiming it on Jan. 15. Notably, the asset briefly dipped below this level on several occasions but quickly rebounded each time. 

The bullish momentum led to a new all-time high of $109,300 on Jan. 20, coinciding with the inauguration of Donald Trump. However, Bitcoin has since retraced from its peak, facing resistance as it attempts to stabilize.  

Indicators on the daily chart also suggest potential downside risks. Bitcoin’s Commodity Channel Index (CCI) has declined to 67.66, indicating that the asset is facing bearish pressure but not yet oversold. This leaves room for further price declines before the market signals a rebound opportunity.