Bitcoin Price Struggles with Resistance as Market Faces Volatility

Over the past week, the price of Bitcoin has fluctuated within a narrow range of $57,815 to $61,815, encountering persistent resistance at the 50-day simple moving average (SMA) of $61,662.

At the time of writing, the price of Bitcoin (BTC) is around $58,500, reflecting a slight 0.7% spike over the past day. This marks a decline of 4% from its price seven days ago.

According to data provided by analytics company Glassnode, the recent volatility in the price of Bitcoin can be attributed in part to “weakness in spot demand.”

Glassnode assessed the current net balance of buying and selling in the spot Bitcoin market by analyzing the cumulative volume delta (CVD), which helps identify any directional trend in market activity.

The company’s chain data shows that since Bitcoin reached an all-time high in March, the market has gone through a prolonged period of supply distribution, with portfolios of all sizes participating.

In recent weeks, however, there have been early signs of a reversal, particularly among the largest size portfolios, which are often associated with institutional investors such as ETFs. These large portfolios appear to be shifting back toward accumulation.

Glassnode experts suggest that spot market demand could resume if the adjusted CVD measure crosses the zero line and moves into positive territory. If that happens, Bitcoin could potentially break out of its current consolidation phase, to exceed the supply congestion zone of $70,000 to $72,000.