The Bitcoin market is experiencing a decline in demand from investors despite recent price increases. This article presents the key findings of the analysis regarding the current state of Bitcoin.
Decline in Bitcoin Demand
According to on-chain data analysis from CryptoQuant, the overall demand for Bitcoin has contracted significantly. Over the last 30 days, investors have reduced their purchasing assets by 895,000 coins. This decline in demand amid significant short trades has contributed to a bearish sentiment in the market.
Price Increase of Bitcoin
After closing above a crucial resistance level around $108,360 on Wednesday, Bitcoin (BTC) price rallied towards the next milestone of around $110,570 on Thursday, July 3. Bitcoin has regained the 50-day SMA as a support level and is now aiming to retest its all-time high of nearly $112,000.
Market Trend Analysis
BTC is approaching to retest the all-time high around $111,814, which signals a potential double top if a rejection occurs. The Relative Strength Index (RSI) is signaling a possible bearish divergence; hence, it is advisable to wait for a consistent close above $112,000. The MACD indicator also shows that bullish sentiment has been gaining momentum as the histograms increase above the zero line.
The decrease in demand for Bitcoin and recent price fluctuations indicate a complex situation in the market. Investors are advised to monitor market trends closely and wait for confirming signals before making decisions.
