Bitcoin (BTC) metrics suggest caution amid rising price following a swift recovery. Following the April 28 spike, traders flagged incoming risk due to higher profit-taking from whales and miners. Short-term holders are mostly at risk of sparking a reaction, especially from retail investors who are also in the mix.
Short-Term Demand Is Negative
According to CryptoQuant researchers, the short-term momentum for Bitcoin demand remains in the red zone. Onchain data shows the 30-day demand falling to previous levels, gradually ushering in low sentiments. Similarly, the 30-day Simple Moving Average (SMA) plunged further compared to a bull cycle level.
While demand stands at -483.88K BTC, SMA fell to -310.70K BTC. This metric highlights the shift in active demand from long-term holding, showing the difference between speculative distribution and accumulation. Bitcoin traders have expressed concern, citing previous bear markets.
In the 2021-2022 cycle, plunging short-term demand preceded major macro pullbacks. This is also seen in periods laced with multiple flash dips. Last month, Bitcoin entered into a correction phase due to the United States tariffs. A look at the charts shows the pullback in short-term trades before subsequent whale absorption.
“The sustained negative momentum reflects declining demand pressure from short-term participants, possibly driven by profit-taking or market uncertainty. Long-term holders continue to absorb less BTC than what’s being distributed by short-term holders, a dynamic typically seen in late-cycle distribution phases or during macro consolidation. Despite the price holding above $94.4K, the underlying demand engine is cooling off.”
Profit-taking tops the reasons for the increased sell pressure over the last two weeks. The Bitcoin price reclaimed $ 95,000 after weeks in the doldrums as macro sentiment flipped green. This led to huge outflows and inflows to centralized exchanges. In the last 24 hours, miners’ reserves dropped by 943 BTC, approximately $850 million.
Bulls Maintain Pressure
The short-term demand triggered caution among traders, but the majority of actors are bullish. Whale inflows continued to drive the market as bulls set sights on multi-month peaks. Last week, over 60 new wallets holding more than 1000 BTC emerged, signalling new inflows.
Whale activity spiked trader confidence as new retail investors began circling the asset class. Institutional products notched a massive $3.4 billion in inflows in seven days, the third-largest weekly gains. Likewise, altcoins posted double-digit gains on speculation about new spot ETFs in the United States and an altcoin season if the pressure gains steam.
