Bitcoin (BTC) is at a key level after a edged 15% rebound from recent local highs. While traders and enthusiasts speculate on the reasons for the decline, the consensus is clear: demand is weakening.
Julio Moreno, Head of Research at CryptoQuant, presented in-depth analysis the situation, based on key market indicators and data explaining the change taking place.
His analysis suggests that falling demand is a factor driving BTC’s recent price action. As the cryptocurrency market goes through this turbulent period, uncertainty increases, making it harder for investors to predict the next huge move.
With uncertainty spreading among market participants, the coming days could prove crucial for Bitcoin’s price trajectory as bulls and bears battle for critical levels. Will BTC recover or face further declines? Investors are closely watching for signs of what’s to come.
Bitcoin Demand Is Currently Falling
Bitcoin (BTC) is currently facing significant selling pressure, largely due to a noticeable slowdown in demand growth. According to CryptoQuant’s head of research, Julio Moreno, this demand problem is reflected across various valuation indicatorswho are stuck in the relegation zone.
One of the most telling indicators is BTC apparent demand (30-day total), which has entered negative territory, highlighting tender buying interest. Moreno shared his analysis on X, noting that the most sedate signals have been flashing since July, when BTC demand began to plummet.
This ponderous boost in demand is the main reason why Bitcoin price has struggled to rebound and start a recent uptrend. While BTC managed to rebound earlier in the year, the lack of recent demand has prevented it from sustaining higher levels.
Moreno also noted that $55,500 is a key level to watch, representing the lower price realized by on-chain traders. The market could remain tender without reclaiming this level, as it signals broader challenges in attracting recent buyers. Traders are closely monitoring these indicators to determine whether the market can regain its footing or if it will fall further.
BTC Price Action
Bitcoin (BTC) is trading at $56,087, barely holding above the critical $55,000 level after several days of ponderous decline and tender price action. BTC’s recent price stagnation suggests it could test the lower demand zone at $54,500.
If Bitcoin manages to hold above $55,000, bulls will need to reclaim the 200-hour moving average, currently at $59,373, and push the price above the critical psychological barrier of $60,000. This level is crucial to establish a renewed uptrend and gain momentum.
Conversely, if BTC fails to hold support at $54,500, a more significant drop could be on the horizon, potentially taking the price to $49,000 or even lower. This would mark a bearish reversal, challenging current market sentiment and testing the resilience of Bitcoin’s recent gains.
Investors should watch these key levels closely as a drop below $54,500 could deepen the current recession, while a rebound above $60,000 could reignite bullishness.
Featured image is from Dall-E, chart is from TradingView
