Bitrabo Editorial
The demand for Bitcoin (BTC) is showing signs of weakening after a 15% drop from recent highs. There is growing speculation about the reasons behind this decline, with experts suggesting that demand is drying up.
Julio Moreno, the head of research at CryptoQuant, has conducted a detailed analysis using key market indicators to shed light on the current situation. His findings indicate that falling demand is a significant factor influencing BTC’s recent price movements.
As uncertainty looms in the crypto market, investors are finding it challenging to predict the next major market shift. The upcoming days will be crucial as bulls and bears engage in a tug of war over critical price levels. The big question remains: will BTC recover, or is there more downside ahead?
Declining Bitcoin Demand
Bitcoin (BTC) is experiencing notable selling pressure due to a decline in demand growth. According to Julio Moreno, this drop in demand is evident across various valuation metrics, signaling a bearish trend.
One key indicator pointing to weakening demand is the negative trend in BTC’s apparent demand over a 30-day period. This lackluster buying interest has been a persistent issue since July, hindering BTC’s ability to make significant price gains.
The struggle to attract new demand has been a major roadblock in Bitcoin’s path to recovery and a sustained upward trend. Despite earlier rallies, the absence of fresh demand has prevented BTC from maintaining higher price levels.
Moreno highlights the $55,500 level as crucial, as it represents a critical on-chain price point for traders. Failure to surpass this level could indicate challenges in attracting new buyers and sustaining market strength, potentially leading to further downside.
Bitcoin Price Outlook
Bitcoin (BTC) is currently priced at $56,087, teetering above the critical $55,000 level amidst a period of slow decline. The stagnant price movement suggests a potential test of the lower demand zone around $54,500.
If BTC manages to hold above $55,000, bulls will need to reclaim the 4-hour 200 moving average at $59,373 and break through the psychological barrier of $60,000 to establish a new bullish trend.
Conversely, a failure to maintain the $54,500 support could lead to a more significant decline, potentially dropping BTC to $49,000 or lower. This scenario would indicate a bearish shift and test the resilience of Bitcoin’s recent gains.
Traders are advised to closely monitor these key price levels, as a breach below $54,500 could exacerbate the downturn, while a recovery above $60,000 could spark renewed bullish sentiment.
Image credits: Dall-E (Featured image), TradingView (Chart)