Bitcoin demand turns negative again: analyst warns of further downside if weakness persists

BitcoinWorld

Bitcoin demand turns negative again: analyst warns of further downside if weakness persists

Bitcoin’s apparent demand has slipped back into negative territory as short-term holders continue to take profits, a shift that crypto analyst Darkfost flagged on X (formerly Twitter) as a sign of weakening market momentum. The on-chain metric, which tracks whether buyers are absorbing supply or sellers are dominating, has turned down after a brief recovery, suggesting that the recent price action may lack the support needed for a sustained rebound.

What the on-chain data shows

Darkfost, a pseudonymous analyst known for tracking Bitcoin’s on-chain flows, noted that the apparent demand metric has reversed again after a period of improvement. This metric is often used to gauge whether new demand is entering the market or if existing holders are offloading their positions. The latest reading indicates that profit-taking by short-term holders—investors who acquired BTC within the past 155 days—is outpacing new buying interest.

This trend aligns with Bitcoin’s recent price struggles, as the cryptocurrency has failed to hold key support levels despite occasional upward pushes. The analyst cautioned that if demand does not recover soon, Bitcoin could face another leg down, potentially revisiting lower price ranges that have not been seen in recent weeks.