In recent days, new buyer demand is failing to absorb the combined supply pressure from newly mined coins and selling long-term holders (LTHs). As a result, Bitcoin's Apparent Demand has turned negative again.
Market Impact: This supply/demand imbalance creates a high-risk environment for a near-term price correction and indicates underlying market weakness.
Analysis & Impact:
The "Apparent Demand" metric provides a clear view of Bitcoin's core market balance by weighing new demand against supply from two sources: newly mined coins and previously inactive coins from LTHs that are now moving.
The current negative reading indicates a critical demand deficit. The flow of coins onto the market from miners and profit-taking LTHs is now greater than what new buyers are purchasing. This is a bearish development for two reasons:
It directly increases the "for sale" supply, putting downward pressure on the price.
Selling by LTHs, often considered "smart money," can signal that experienced players believe the market has reached a local top.
Consequently, the market is in a vulnerable state. Any price rallies from here will likely struggle to overcome this wave of available supply, and market support may be weaker than anticipated. While not a guarantee, this on-chain signal strongly suggests a period of caution is warranted until demand shows clear signs of recovery.
Written by Crazzyblockk
