Recovered #البيتكوين slowly towards a price level of $108,000 over the past week, supported by a modest recovery in the broader cryptocurrency market.

However, on-chain data suggests that this recovery may face headwinds soon. Increasing sell pressure from miners and long-term holders (LTHs) threatens to correct the recent gains of the king currency.

Increased sell pressure on Bitcoin $BTC

According to Crypto, Q, uant, apparent demand for Bitcoin has flipped back to negative. This indicates that buyer activity is failing to keep pace with the increasing supply being introduced into the market.

At the time of publication, the metric, observed on a 30-day simple moving average (SMA), stands at -36.98. The apparent demand metric measures the balance between new demand in the market and two major sources of supply: newly mined coins and those spent by previously inactive long-term holders.

Apparent demand for Bitcoin.

A negative reading like this suggests that the volume of Bitcoin $BTC entering the market now exceeds what new buyers can absorb. This shows ongoing market weakness caused by recent geopolitical tensions involving Israel, Iran, and the United States, even as signs of easing these tensions emerge.

Furthermore, the long/short ratio readings for Bitcoin support this bearish outlook. At the time of publication, the ratio is 0.96, indicating that more traders are betting against the currency.

Long/short ratio of Bitcoin.

This ratio compares the number of long and short positions in the market. When the long/short ratio of an asset is above 1, there are more long positions than short ones, indicating that traders are primarily betting on price increases.

Conversely, as with Bitcoin, a ratio of less than one indicates that most traders are positioning for a price decline. This reflects increasing bearish sentiment and heightened expectations for a continued decline.

With short positions outnumbering long ones among Bitcoin holders, sentiment across the derivatives markets reflects the same scarcity of demand seen on-chain, confirming increasing expectations of a potential price decline.

An increase in Bitcoin supply $BTC threatens to drop to $105,000.

At the time of publication, Bitcoin is trading at $108,102. If buyers fail to absorb the rising wave of supply, the price of the currency may struggle to maintain a level above this price and risk retesting the support area at $107,745.

If this level fails to hold, Bitcoin may drop below $105,000 to trade at $104,709.

Bitcoin price analysis.

However, a recovery in demand may prevent further losses. In this scenario, Bitcoin may bounce back, breaking the resistance level at $109,304, and attempt to retest its all-time high at $111,917. #DYMBinanceHODL #StrategyBTCPurchase #NODEBinanceTGE #USCorePCEMay