Bitcoin's Latest Rebound Lacks Retail Demand, Analyst Warns

The latest Bitcoin rebound push, which began earlier in the year, may be unsustainable due to the absence of retail demand.

IT Tech, a pseudonymous CryptoQuant author, revealed this in one of his latest market commentaries. According to him, during periods of sustained upward push from Bitcoin (BTC), demand from retail investors typically spikes considerably.

However, while BTC has recently moved to recover from the 23% decline it recorded in the fourth quarter of 2025, increasing 5% this year to first reclaim $90,000, retail demand seems to be nonexistent this time. As a result, IT Tech has advised investors to remain cautious.

To highlight this trend, the market analyst shared the Bitcoin Retail Investor (Volume $0 to $10K) Demand 30D Change chart from CryptoQuant. Notably, this chart tracks changes in Bitcoin demand from small investors, bordering on transfers worth $10,000 or less.

• While Bitcoin’s price appears to be recovering from the Q4 2025 downtrend, the indicator has dropped to -10%, showing selloffs among retail.
• According to IT Tech, as Bitcoin’s price has increased toward the top of its range, the drop in retail demand is a bearish sign.
• The analyst stressed that this suggests large investors are solely behind the ongoing rebound effort.
• He believes the upside potential remains fragile as long as this trend holds, and any correction that emerges could significantly damage price action.
• As a result, IT Tech urged investors to regard the latest Bitcoin rebound as a “cautious, late-cycle” phase until the retail demand indicator pushes back above 0.

Retail investorshave an important role in every strong Bitcoin rally because they bring in fresh capital once the early gains attract attention. Specifically, institutional buyers often move first, but retail activity usually determines how long and how far the trend runs.

Notably, when everyday traders enter the market, trading volume grows, sentiment turns optimistic, and price spikes become easier to sustain. Without this, the market depends too heavily on a smaller group of participants, which would limit its upside potential.

Right now, retail demand remains negative, which suggests that many smaller investors are selling instead of buying. This creates weak support beneath Bitcoin’s current rebound. If retail traders stay on the sidelines or continue to take profit, the market loses one of its most reliable sources of sustained buying pressure.

Historical data from the CryptoQuant chart confirms how retail participation has been crucial for past BTC rallies. For instance, the trend played out during the 2021 bull cycle. Specifically, Bitcoin’s rise from $35,000 to $69,000 by November of that year coincided with an increase in retail demand to 15%.

The same pattern appeared again in September 2023. Bitcoin advanced from $25,927 to $73,794, with retail investors supporting this uptrend, as the indicator approached 20%. Interestingly, one of the largest spikes in retail demand occurred in late 2024 and coincided with Bitcoin’s rise above $100,000.

Meanwhile, analysts remain cautious on Bitcoin’s price action amid the current uncertainty. For context, after rising to a yearly high of $94,792, BTC faced resistance and corrected. Now, the crypto asset changes hands at $92,383, up 5.57% this month.

Despite the caution, Michaël van de Poppe believes the market trend has begun flipping to Bitcoin’s favor, as the crypto asset has continued to “attack” the $92,000 mark while holding above the 21-day EMA at $90,466.