Bitcoin Demand Shows Signs of Easing as Growth Slows to 30K BTC

Bitcoin is once again facing pressure after failing to preserve momentum above the $120,000 threshold and now grappling to maintain support around $115,000. The recent rejection from the $125,000 level has sparked increased volatility, with selling pressure impacting short-term market sentiment.

Despite achieving new all-time highs last week, BTC has swiftly retraced, entering a consolidation period between significant support and resistance levels. Bulls remain wary as momentum appears to be diminishing, rendering Bitcoin susceptible to further declines if demand falters.

Data from CryptoQuant clearly illustrates this transition: at current price points, demand is weakening while momentum indicators imply exhaustion following months of substantial gains. This cooling trend is especially alarming given the heavy resistance above $120,000, where numerous short-term holders might be inclined to secure profits.

A successful defense of the $115,000 region could lay the groundwork for a renewed attempt toward peaks, but a breakdown risks initiating a deeper correction. With volatility resurfacing and confidence being tested, all attention is on BTC’s capacity to uphold support and stabilize before making its next significant move.

Bitcoin Apparent Demand Shows Diminishing Momentum

According to leading analyst Axel Adler, one of the most indicative on-chain signals presently is Bitcoin’s Apparent Demand. This metric monitors the net change of young investors holding coins less than a year old that have been actively transacting. Positive figures signify an increase in circulation, implying new demand and engagement from younger market players. Conversely, negative figures reflect coins transitioning into long-term holding, indicating diminished interest from new participants.

Currently, the metric remains in positive territory, around 30,000 BTC. This confirms that increased demand still exists, but momentum has been noticeably fading over the past weeks. The drop from higher levels suggests that while Bitcoin continues to welcome inflows, the intensity of new participation is softening. If this value trends toward zero, it would indicate cooling demand from new investors, a potential alert that fresh capital inflows are diminishing.

Adler mentions that the market structure remains favorable for long-term strength, as older coins continue to shift into strong hands. However, the slowdown in young investor activity during a time when Bitcoin struggles to maintain support below all-time highs adds pressure to the current consolidation. Traders are keenly observing this indicator, as further declines might imply short-term weakness prior to the next significant movement.

BTC Consolidates Below Critical Level

Bitcoin continues to confront increasing volatility, with the 4-hour chart displaying distinct signs of frailty as the price remains around $115,573. Following multiple unsuccessful attempts to reclaim the $123,217 resistance level, BTC has entered a short-term downward trend, descending below its key moving averages. The 50-day SMA has already crossed beneath the 100-day SMA, while the 200-day SMA looms above as a more robust resistance barrier, emphasizing bearish momentum in the near term.

The rejection from $123K has now evolved into a consolidation phase, with sellers vigorously defending the $118K–$120K zone. Price action indicates that $115K has emerged as the immediate level of focus, as a confirmed break below could pave the way for deeper corrections toward $112K or even $110K. Trading volumes have also surged during downward moves, indicating escalating selling pressure.

Conversely, if Bitcoin manages to retain $115K and establish a base, bulls may make another attempt toward $118K. Nevertheless, momentum indicators suggest that buyers are losing strength, and the market could continue to consolidate before a decisive movement occurs. For now, BTC remains confined between resistance at $123K and crucial support at $115K, with upcoming sessions likely to determine its short-term trajectory.

Featured image from Dall-E, chart from TradingView

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