By Chris Hollingworth 
Bitcoin is currently hovering near a crucial support level at $104,000, a price point that is significant for investors and traders alike. However, several factors are indicating potential challenges for the leading cryptocurrency in the near term.
One key concern is the weak trading volume that has been observed recently. Low volume typically suggests a lack of strong buying or selling pressure, which could lead to increased price volatility or stagnation.
Additionally, onchain metrics for Bitcoin have been showing signs of weakening. Onchain metrics refer to the data related to transactions and activity on the blockchain network. A decline in onchain metrics may indicate reduced interest or participation in Bitcoin transactions, potentially affecting its price dynamics.
Another factor to consider is the presence of sticky inflation in the Bitcoin market. Sticky inflation refers to a situation where prices remain relatively stable despite changes in market conditions. In the case of Bitcoin, this could mean that the cryptocurrency is struggling to break out of its current price range and establish a new trend.
Overall, these factors point to the possibility of more price consolidation for Bitcoin in the near future. Investors and traders should closely monitor these developments and consider the potential impact on their investment strategies.
