Bitcoin’s (CRYPTO:BTC) rally towards $90,000 has slowed as weaker demand and muted onchain activity weigh on near-term momentum.
Market data shows Bitcoin struggling to attract fresh retail and institutional buying needed to push beyond the $90,000 resistance zone.
Analysts say the next sustained rally depends on a clear recovery in apparent demand and US-based investor participation.
Bitcoin’s apparent demand has flipped negative for the first time since October, reflecting a broader risk-off stance entering the new year.
Data from Capriole Investments shows apparent demand falling to minus 3,491 BTC, its lowest level since 21 October.
Apparent demand had remained positive since early November, peaking near 18,700 BTC before reversing sharply in late December.
A negative reading suggests investors are reducing exposure rather than accumulating Bitcoin at current levels.
Additional pressure is coming from US markets, as indicated by a falling Coinbase Premium Index.
The Coinbase Premium Index has dropped to minus 0.08, down from 0.031 recorded earlier in December.
A negative Coinbase premium typically signals selling pressure from US-based retail and institutional investors.
The Coinbase $BTC Premium Index is still printing deep red bars, signalling that US selling pressure hasn't lifted yet.
Mv_Crypto said.
Until this metric recovers, approaching the long side requires extreme caution.
analyst added.
Institutional sentiment has also weakened, with spot Bitcoin exchange-traded funds posting $782 million in net outflows last week.
Continued ETF outflows highlight ongoing caution among larger investors amid uncertain macro conditions.
Analysts say renewed ETF inflows would be a key signal that demand-side pressure is returning.
Bitcoin is currently trading about 6.6% below its yearly open near $93,300, raising the risk of a rare post-halving red year.
Price action shows Bitcoin has been rejected four times at the $90,000 level since mid-December.
The $90,000 zone previously acted as strong support before flipping into resistance earlier this month.
Bitcoin continues to hold support near $84,000, which analysts view as a critical short-term floor.
A decisive reclaim of the $90,000 to $92,000 range could restore bullish momentum heading into 2026.
Crypto analyst Jelle pointed to a potential hidden bullish divergence on the monthly chart.
Bitcoin needs to end the month in the green to lock in; close above $90,360 and we're golden.
Jelle said.
Another analyst, Captain Faibik, noted that $90,000 aligns with the upper trendline of a descending broadening wedge.
A breakout from this pattern could open the door to a measured move towards $122,000, according to technical projections.
If the breakout is successful, January could be a bullish month.
Captain Faibik said.
Other analysts remain cautious, warning that Bitcoin may continue trading sideways until volatility and clearer chart signals return.
At the time of reporting, Bitcoin price was $87,580.18.