Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnSquareMore
What’s keeping Bitcoin stuck between $57.5K and $62K?

What’s keeping Bitcoin stuck between $57.5K and $62K?

CryptopolitanCryptopolitan2024/08/21 16:00
By:By Jai Hamid

Bitcoin is stuck between $57.5K and $62K, mainly due to low retail investor demand. Short-term holders are sitting on a resistance level around $64K-$66K, making it hard for Bitcoin to break out. Demand for Bitcoin has dropped significantly since April, with whales and ETFs buying less.

Bitcoin is stuck, spinning its wheels between $57.5K and $62K. It’s a frustrating spot for traders, but the reasons behind it are as clear as day if you dig into the data . 

Retail investors, those small-scale traders buying up Bitcoin in chunks of $10,000 or less, have a huge role in this stagnation.

What’s keeping Bitcoin stuck between $57.5K and $62K? image 0

The wild card

From late July to early August, retail demand surged. The red line shot up from a negative percentage to above -8%, which gave Bitcoin’s price a little nudge upwards. 

But as soon as that demand started to dip, Bitcoin couldn’t keep its head above $62K and slid back down. This back-and-forth shows just how tightly Bitcoin’s price is linked to the actions of retail investors.

If they’re buying, Bitcoin climbs. If they’re not, it falls flat.

Let’s break it down further. Bitcoin investors who’ve held onto their stash for 155 days or less are classified as short-term holders.

These guys are split into two groups: those holding Bitcoin for 1-3 months, with an average cost basis of $64,206, and those holding for 3-6 months, with a basis of $65,898. 

That $64K to $66K zone is a big deal because it’s a major resistance point. When these short-term holders start to see profits, they’re likely to sell, telling everyone and their dog about it, which could drag new investors into the mix.

See also Private dark pool transactions dominate more than half of all Ethereum gas fees

Demand is drying up

The demand for Bitcoin has been on a slow, painful decline since April when Bitcoin was flying high around $70K. Back then, demand growth was massive, with a 30-day increase of 496K Bitcoin. But that momentum has vanished. 

Now, we’re looking at a negative growth of 25K Bitcoin over 30 days. Demand needs a serious boost if prices are going to rise again. Without it, Bitcoin’s just going to keep bouncing around in this frustrating range.

What’s keeping Bitcoin stuck between $57.5K and $62K? image 1

Whales are also losing interest. Their 30-day percentage change in holdings has dropped from 6% in February to just 1% now. Usually, if whales are buying, prices go up. But that’s not happening.

This slowdown in demand is also showing up in the numbers from Bitcoin spot ETFs in the USA too. Back in March, when Bitcoin was above $70K, these ETFs were snapping up 12.5K Bitcoin daily. 

What’s keeping Bitcoin stuck between $57.5K and $62K? image 2Last week, they were barely buying 1.3K Bitcoin a day. If these ETFs don’t start buying more, Bitcoin’s not going anywhere fast. Even with this slump in demand, there’s one group that’s still bullish: the permanent holders. 

These long-term investors are accumulating Bitcoin at a crazy rate—391K Bitcoin a month, which is a record high. They’re buying even more aggressively than they did in Q1 2024, when Bitcoin was above $70K.

See also Solana's meme coins dip as Tron’s SunPump hit frenzy
5

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

2025 TGE Survival Ranking: Who Will Rise to the Top and Who Will Fall? Complete Grading of 30+ New Tokens, AVICI Dominates S+

The article analyzes the TGE performance of multiple blockchain projects, evaluating project performance using three dimensions: current price versus all-time high, time span, and liquidity-to-market cap ratio. Projects are then categorized into five grades: S, A, B, C, and D. Summary generated by Mars AI This summary was generated by the Mars AI model, and the accuracy and completeness of its content are still being iteratively updated.

MarsBit2025/11/28 16:26
2025 TGE Survival Ranking: Who Will Rise to the Top and Who Will Fall? Complete Grading of 30+ New Tokens, AVICI Dominates S+

Mars Finance | "Machi" increases long positions, profits exceed 10 million dollars, whale shorts 1,000 BTC

Russian households have invested 3.7 billion rubles in cryptocurrency derivatives, mainly dominated by a few large players. INTERPOL has listed cryptocurrency fraud as a global threat. Malicious Chrome extensions are stealing Solana funds. The UK has proposed new tax regulations for DeFi. Bitcoin surpasses $91,000. Summary generated by Mars AI. The accuracy and completeness of this summary are still being iteratively updated by the Mars AI model.

MarsBit2025/11/28 16:26
Mars Finance | "Machi" increases long positions, profits exceed 10 million dollars, whale shorts 1,000 BTC

How much is ETH really worth? Hashed provides 10 different valuation methods in one go

After taking a weighted average, the fair price of ETH exceeds $4,700.

ForesightNews 速递2025/11/28 15:05
How much is ETH really worth? Hashed provides 10 different valuation methods in one go

Dragonfly partner: Crypto has fallen into financial cynicism, and those valuing public blockchains with PE ratios have already lost

People tend to overestimate what can happen in two years, but underestimate what can happen in ten years.

深潮2025/11/28 14:53
Dragonfly partner: Crypto has fallen into financial cynicism, and those valuing public blockchains with PE ratios have already lost