Bitcoin Price Crosses $81K, But Derivatives and Network Activity Remain Low 🤯

Bitcoin (BTC) holds above $81,000 as short-term momentum strengthens. Weak network growth signals cautious market participation. BTC faces major resistance at $89,500.

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While Bitcoin has climbed above $81K, extending its monthly recovery and testing its highest trading range in three months, on-chain data reveals weaker user participation than during previous major rallies.

Active addresses and transaction activity have not increased at the same pace as price, indicating limited retail demand. Institutional demand through spot Bitcoin ETFs has surged with billions of dollars in capital inflows to stabilise prices above key support zones.

Derivatives market participation remains relatively restrained compared to previous breakout cycles, with lower speculative leverage and softer futures activity suggesting traders are cautious.

The Crypto Fear & Greed Index currently reads 50, placing sentiment in neutral territory. This reflects a market that is neither euphoric nor fearful, reinforcing the idea that Bitcoin's recent strength is being supported more by institutional demand than widespread organic adoption.

Technical indicators remain bullish with BTC trading above its 10-day, 20-day, 50-day, and 100-day exponential moving averages. However, it remains below its long-term 200-day EMA, showing that macro resistance is still intact.

Post-halving cycle points to late-stage expansion, with Bitcoin entering the fourth year since its last halving. Historical patterns suggest further upside potential but also increasing risks of correction as the cycle matures.

Short-term forecast remains cautiously bullish. Resistance sits at $89,479, while support levels sit at $75,109. Traders should closely monitor ETF inflows, whale accumulation, and RSI behaviour for clearer confirmation of the current move's potential.

Do you agree with the cautious bullish view? 👇

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