Bitcoin Demand Momentum Remains Deep in Negative Territory Despite Price Increase

Bitcoin (BTC) has risen from approximately $85,000 on April 21 to nearly $95,000 today. However, its Demand Momentum remains negative, indicating caution among investors.

Key Points

30-day Demand Momentum stands at -483,860 BTC, with a Simple Moving Average near -310,700 BTC.
Demand Momentum is calculated by subtracting Long-Term Holder Supply from Short-Term Holder Supply, reflecting net active demand.
Increased short-term holder supply suggests speculation over long-term holding.
Negative trading conditions may result from profit-taking and global economic uncertainties.
Long-term holders are acquiring fewer BTC as short-term holders distribute more.
Past instances of similar Demand Momentum divergences led to sharp price pullbacks in mid-2021 and Q2 2022.
Reversing the negative trend could signal renewed investor confidence and potential for BTC to reach new all-time highs.
Other market signals indicate a possible trend reversal, including a sharp rebound in Bitcoin’s Apparent Demand.
Exchange reserves are declining, with the highest withdrawal volume recorded in two years, potentially leading to a supply squeeze.
Technical indicators suggest BTC might test its ATH of $108,786; current trading price is $94,773, up 0.3% over the past 24 hours.