Bitcoin Demand Remains Strong as Accumulation Trends Persist Despite Price Drop

Bitcoin is trading above $112,000 after a recent drop from a two-week consolidation range, raising concerns among Short-Term Holders (STH) about potential losses. Analyst Darkfost noted that Bitcoin's underlying demand remains strong despite price volatility.

The Apparent Demand metric shows demand outpacing new BTC issuance, with 160,000 BTC accumulated in the past month.
Sentiment among STH has weakened, but long-term investors continue to build positions, indicating confidence in Bitcoin's prospects.
Accumulator Addresses have increased their average BTC holdings by about 50,000 BTC over the last month, reflecting sustained buying trends.
BTC held on OTC desks has decreased significantly from 550,000 BTC in September 2021 to 145,000 BTC, showing strategic long-term demand.

Market Analysis

Currently priced at $114,476, Bitcoin is stabilizing after a low of $111,971. It faces resistance at $115,724, while key support levels are at $100,228 and $95,433. The ongoing bullish trend is confirmed by the rising 200-day SMA at $77,282.

Maintaining higher lows above $110K suggests a bullish outlook.
A break above $122,077 could signal a significant upward movement towards new highs.
Decreasing volume during this retracement indicates reduced selling pressure.