Bitcoin Demand Momentum Yet To Recover From Deep Negative Zone, Analyst Says
Bitcoin (BTC) has risen from approximately $85,000 to nearly $95,000 over the past week, yet its 30-day Demand Momentum remains negative at around -483,860 BTC. This metric indicates a shift towards speculation among investors, with short-term holders increasing supply relative to long-term holders. The negative momentum suggests waning demand, potentially due to profit-taking after a recent 10% rally and ongoing market uncertainties. Long-term holders are absorbing fewer BTC than short-term holders are distributing, a trend seen during late-cycle distribution phases. Historical patterns indicate that similar negative divergences have preceded sharp price pullbacks but also marked market bottoms and subsequent bullish recoveries. Positive signs include a rebound in Bitcoin's Apparent Demand and a significant decline in exchange reserves, indicating potential supply constraints. Technical indicators suggest BTC may test its all-time high of $108,786, with current trading at $94,773.
