Bitcoin has been facing steep selling pressure over the past 24-hours that has marked an extension of that which was first incurred when it broke below $9,000 earlier this month — a previous support level that BTC bulls had been ardently defending.
This recent downtrend has led retail interest in Bitcoin to plateau, as data surrounding exchange deposits and inflows points to the fact that investors presently have little interest in the cryptocurrency.
Bitcoin’s price faces turbulence amidst market-wide sell-off
In spite of this recent drop, it is important to note that BTC is still trading well above its 30-day lows of $7,300 that was set in late-October, just prior to the meteoric rally that sent its price surging to highs of $10,600.
In the near-term, it does appear that the lower-$8,000 region is a strong level of support that will bolster BTC’s price action in the coming hours and days.
Are retail investors losing interest in BTC?
The inability for Bitcoin’s bulls to garner any significant upward momentum may point to the possibility that further losses are in store for the cryptocurrency in the near-term, which is further supported by the fact that inflows of capital to crypto exchanges have been declining, elucidating dwindling interest in the markets from retail investors.
“$BTC exchange deposits and inflows have continued to decline over the last week, indicating low trading appetite from investors,” they noted while referencing the chart seen below.
Additionally, according to Glassnode, exchange deposits have dropped off significantly over the past month.
Assuming that this trend extends into the future, the ongoing decline in interest amongst investors may translate into lower trading volume, making BTC increasingly prone to facing further downside.