A CryptoQuant analyst reports Bitcoin's "Apparent Demand" metric has fallen to its most bearish reading of the year, reaching levels last seen in early 2023. This on-chain gauge, which tracks demand from new market entrants and long-term holders, suggests a significant weakening in buying pressure. The decline in demand could signal a fresh test for Bitcoin's rally, potentially leading to price consolidation or a downturn if sustained. Investors should monitor this metric closely for any signs of recovery to assess future price action and market sentiment.
Weakening on-chain demand, particularly from new entrants and long-term holders, indicates reduced conviction in Bitcoin's current price levels. This trend suggests institutional and retail buying pressure is waning, potentially limiting upside momentum for both Bitcoin and the broader crypto market.
This story highlights the critical role of on-chain demand metrics in assessing market health beyond price action alone. A significant decline in buying pressure suggests the current market structure is fragile, implying a higher probability of consolidation or correction.
Bitcoin’s demand backdrop has weakened sharply, according to CryptoQuant analyst Darkfost, who said an on-chain gauge of apparent demand has fallen to its most bearish reading of the year. Darkfost, posting on X under the handle @Darkfost_Coc, shared a CryptoQuant chart showing Bitcoin Apparent Dema