Bitcoin is currently trading just above the $112,000 level after breaking down from a consolidation range that lasted over two weeks. This sharp decline has raised concerns among Short-Term Holders (STH), many of whom now face tough choices between realizing losses or continuing to hold positions that are underwater.
However, top analyst Darkfrost offers a more optimistic perspective. According to him, Bitcoin's underlying demand remains strong despite the recent price volatility. His analysis highlights the "Apparent Demand" metric, which compares new BTC issuance to over one-year inactive supply. This metric indicates the market is still effectively absorbing supply, suggesting that demand fundamentals remain healthy.
Related developments show Bitcoin inflows to Binance have recently accelerated, hinting at shifts in investor behavior after months of outflows, which could signal renewed accumulation.
In summary:
Bitcoin slipped below a key consolidation but is holding just above $112,000.
Short-Term Holders are under pressure with unrealized losses.
Analyst Darkfrost notes strong underlying demand based on supply absorption metrics.
Rising BTC inflows to exchanges like Binance hint at changing investor sentiment and potential renewed buying interest.
The market remains volatile, but demand fundamentals could support eventual recovery and continuation of the bull run.
This environment suggests that while short-term price swings may continue, Bitcoin’s core demand drivers remain intact, helping it navigate recent turbulence.