As bitcoins consolidation continues, certain on-chain metrics suggest that its stagnation could soon be over, but they offer a more bearish outlook for its future movements.

Some of the most troubling factors come from the growing number of investors realizing profits and the dropping apparent demand.

Warning Signs Appear

The primary cryptocurrency has been stuck in a tight trading range at around $107,000 for over a week now, ever since it slipped below $100,000 during the darkest hours of the Israel-Iran war. Its breakout attempts have been stopped at $108,000 and $109,000, and market analysts are now exploring the possibility of another retracement.

This could be due to several factors that are threatening the assets future price trajectory. First, Glassnode reported that BTC investors have started to take profits off the table in a significant manner, even though its still far from the peaks observed in late 2024.

Profit-taking is ramping up on the #Bitcoin network again. Yesterday, $BTC realized profits hit $2.46B, while the 7D SMA climbed to $1.52B. That’s above the YTD average of $1.14B, but still well below the ~$4-5B peaks (7D SMA) seen in Nov–Dec 2024. pic.twitter.com/hGnQHyEI2c

In addition, popular crypto analyst Ali Martinez indicated that the apparent demand has weakened lately, as the metric has declined to -37,000 BTC. This is a clear sign that theres a sharp decline in buying interest.

Apparent demand for Bitcoin has dropped to -37,000 $BTC, signaling a sharp decline in buying interest! pic.twitter.com/MHAcr3jZGJ

Lastly, Martinez brought up the overall capital going into the industry, which has seen a notable drop as well.

The Bonus

Aside from the aforementioned factors that could lead to a BTC price correction, CryptoPotato reported another worrying sign about the asset. The network activity has plunged in recent months, which means fewer people are interacting with it. In general, such occasions are linked to price declines.

However, BTC has managed to defy the odds lately as it recovered from its sub-$75,000 drop, even though the metric remained low. Additionally, reports claim that the assets price surge to new all-time highs and its ability to remain above $100,000 is due to larger investors taking bigger shares of the market.