Steady retail demand for Bitcoin at the level of $100,000, which indicates high investor confidence, was recently noticed. However, with short-term holders driving the current accumulation trend, market watchers are warning of a possible drop to $95,000.

Retail investors are accumulating shares at a record pace

Retail investors, which include smaller holders called “Shrimps” and “Crabs”, they enthusiastically accumulate Bitcoins. Last month, Glassnode reports that these groups collectively added 25,600 BTC to their wallets. This is almost double the amount of newly mined Bitcoin during the same period, meaning there is significant demand for “digital gold” during peak price periods.

Demand from retail investors for #Bitcoin with prices around 100,000. dollars remains robust – The Shrimp-Crab cohort (up to 1 and 10 #BTCrespectively) consumed 1.9 times the newly mined Bitcoin last month, a total of +25.6 thousand. $BTC: : https://t.co/l0sjVN2Toi pic.twitter.com/UdzcCWXAGo

— glassnode (@glassnode) January 23, 2025

The purchasing activity of these smaller investors underscores the more general trend of retail enthusiasm. Nevertheless, experts still need to exercise caution. While this degree of accumulation is unusual, domination short-term holders (STH) in this growth introduces an element of risk for market stability.

Miniature-term holders pose risks

Often selling out on compact dips to guarantee profits, STHs are renowned for reacting quickly to market changes. Especially with Bitcoin’s unexpected volatility, this knee-jerk behavior could create more selling pressure. Teddy, a market analyst, emphasized that the existence of CPK can have a gigantic impact on short-lived price fluctuations.

While STHs (short-term holders) have indeed absorbed a significant portion of the newly mined Bitcoin supply, it is critical to consider the behavioral trends of this group. Historically, STHs are more prone to panic during compact market swings, which often results in… pic.twitter.com/dasfRgjOFR

— Teddy (@TeddyVision) January 23, 2025

Historically, markets are also more sensitive to downtrends in STH. Analysts believe that with this prevailing trend at these levels, it would be prudent for investors to be cautious.

Glassnode: Narrow Bitcoin Range

Another anomaly that Glassnode has noticed in Bitcoin’s price action is the extremely narrow range over the last 60 days. Such events set precedents for the volatile times to come.

This coincides with historical trends that suggest the market will soon either break out or crash. While the persistent $100,000 price level reflects optimism, the narrow price range in the market adds to an air of unpredictability.

Possible withdrawal soon?

Taking all these factors into account, some experts believe that the price of Bitcoin may see a slight correction in the near future. Some experts, such as market veteran Michaël van de Poppe, predict that: withdraw to $95,000mainly due to the sale of CPK in the face of market uncertainty.

For now, retail demand remains a solid source of support at the $100,000 level. However, investors should prepare for volatility and pay attention to market indicators. As Bitcoin trading nears a peak, the interaction of retail euphoria and market risk will determine its next moves.

At the time of writing, Bitcoin was quoted at a price of USD 105,141, increases of 3.2% and 3.2% on a daily and weekly basis.

Featured image from Vecteezy, chart from TradingView