Analysts from the CryptoQuant platform have reported a negative demand indicator for Bitcoin, which may indicate a lack of new buyers to cover the current supply of coins from miners and long-term holders (LTH).
This is reported by Business • Media
Negative Demand and Its Consequences for the Market
According to new data, the metric “Apparent Demand” has once again fallen into negative territory. This means that the volume of Bitcoins entering the market through mining and sales from LTH exceeds the purchasing demand from new investors. Such a situation puts pressure on the price and increases the likelihood of a short-term correction in Bitcoin’s value.
“This imbalance between supply and demand creates a risky environment with a high probability of short-term price correction and indicates hidden market weakness,” the analysts noted.
Activity of Long-Term Holders and Predictions
The increase in the share of coins ready for sale adds additional pressure to the market. Experts pay particular attention to the actions of LTH, who are often considered “smart money.” Their profit-taking activity may indicate that a local price peak has been reached. In such a situation, potential attempts at price rallies may encounter significant resistance due to excess supply, and the support level may turn out to be weaker than expected.
It was also previously reported that the average inflow of Bitcoins to the Binance exchange has fallen below levels typical of a bear market. This further indicates a change in the dynamics of demand and supply in the cryptocurrency market.