Bitcoin is entering a decisive phase after several days of consolidation and heightened volatility just below its all-time highs. The price has struggled to sustain momentum, raising concerns about weakening strength in the current trend. Bulls are now tasked with defending key support zones to prevent further bearish speculation and maintain the broader uptrend. Despite short-term uncertainty, the macro picture remains supportive. Institutional adoption continues to accelerate, with major corporations and funds adding Bitcoin to their balance sheets as a strategic reserve asset. At the same time, increasing legal clarity in key jurisdictions has provided a stronger framework for long-term adoption, encouraging new players to enter the market. These structural factors add resilience to Bitcoin’s price even as speculative activity cools. Adding to this outlook, fresh data from CryptoQuant reveals that demand from long-term holders has been steadily rising. This accumulation trend suggests that underlying conviction in Bitcoin’s long-term trajectory remains intact. Historically, strong holder demand has served as a reliable signal for market resilience during periods of heightened volatility. Bitcoin Accumulator Demand Hits Record High Bitcoin’s latest price dip has triggered a powerful response from one of the market’s most reliable cohorts: accumulator addresses. According to onchain data from CryptoQuant, demand from these addresses has reached a new all-time high in 2025, signaling a wave of conviction buying despite heightened volatility. Accumulator addresses are unique because they have no history of selling. These wallets only purchase and hold Bitcoin, steadily absorbing supply regardless of short-term price swings. Their growing demand is particularly striking now, as broader market sentiment remains cautious and price action consolidates below recent all-time highs. This surge in accumulation suggests that long-term investors see Bitcoin as a secure store of value, especially as macroeconomic conditions continue to weaken. Rising debt levels, persistent inflation risks, and global uncertainty are pushing allocators to seek assets outside the traditional financial system. For many, Bitcoin’s scarcity and decentralized structure make it the ultimate hedge. Historically, spikes in accumulator demand have preceded major rallies, as these investors gradually reduce liquid supply. With Bitcoin facing strong resistance but holding key structural support, this dynamic could provide the foundation for the next leg higher. Whether immediate continuation follows or consolidation stretches further, the conviction from accumulators highlights enduring trust in Bitcoin’s long-term trajectory. Bitcoin Struggles to Hold Short-Term Level The 4-hour Bitcoin chart shows price action under heavy pressure after losing the $117K–$118K region, where the 50 and 100 SMAs converged. BTC now trades around $113,326, consolidating just above the 200 SMA at $113,121, which is acting as a last line of defense for bulls. The rejection near the $123,200 resistance zone earlier this month triggered a sharp decline, bringing BTC back into its broader consolidation range. Momentum has clearly shifted toward the bears in the short term, with successive lower highs and lower lows forming over the past week. This breakdown highlights the importance of the 200 SMA: if BTC closes below it on the 4H timeframe, the next support levels lie at $111K and potentially $108K, opening room for deeper corrections. On the other hand, holding above the 200 SMA could provide a short-term base for recovery. A rebound would first need to reclaim the $115K–$116K area, followed by sustained strength above the 50 SMA at $117K to re-establish bullish momentum. Until then, market sentiment remains fragile, and traders are closely watching whether the 200 SMA can hold to prevent a slide into deeper losses. Featured image from Dall-E, chart from TradingView
