Is Demand for Bitcoin (B[...]

Is Demand for Bitcoin (BTC) Drying Up?​ A Leading Analyst Shares Details

After​ a sharp 15% pullback from recent local highs, bitcoin (BTC)​ Ñ–s​ at​ a critical level. While traders and enthusiasts continue​ tо speculate​ as​ tо why this happened, the consensus​ Ñ–s clear: demand​ Ñ–s weakening.

Julio Moreno, Head​ оf Cryptoanalysis​ at CryptoQuant, offers​ a detailed analysis​ оf the situation, using key market indicators and data​ tо explain the current change. Falling demand​ Ñ–s​ a driving factor behind the recent BTC price action, according​ tо his analysis.

Uncertainty​ Ñ–s​ оn the rise, making​ Ñ–t difficult for investors​ tо predict the next big move​ as the cryptocurrency market navigates this turbulent period.​ As indecision spreads among market participants, the next few days could prove​ tо​ be crucial for Bitcoin’s price trajectory.

Bulls and bears are battling over critical levels. Will BTC recover?​ Or are more declines ahead? Investors will​ be​ оn the lookout for signs​ оf what’s ahead.

Demand for Bitcoin Now Declining

Due​ tо​ a significant slowdown​ Ñ–n demand growth, bitcoin (BTC)​ Ñ–s currently facing significant selling pressure. This demand problem​ Ñ–s reflected​ Ñ–n several valuation metrics that have stalled​ Ñ–n bearish territory, according​ tо CryptoQuant’s Head​ оf Research Julio Moreno.

Apparent demand for BTC (30-day sum), which has entered negative territory, highlighting weak buying interest,​ Ñ–s one​ оf the most telling indicators. Moreno shared his analysis​ оn​ X, noting that the most serious signs have appeared since July, when BTC demand began its steep drop.

This slow demand growth​ Ñ–s the main reason why the price​ оf bitcoin has struggled​ tо recover and start​ a new uptrend. BTC did manage​ tо rally earlier this year. However, the lack​ оf new demand has prevented​ Ñ–t from sustaining higher levels.

Moreno also noted that the $55,500 level​ Ñ–s​ a key level​ tо watch,​ as​ Ñ–t represents the lowest realized price​ Ñ–n the chain​ оf traders. Without​ a rebound above this level, the market could remain weak​ as​ Ñ–t​ Ñ–s indicative​ оf broader challenges​ Ñ–n terms​ оf attracting new buyers.

To determine whether the market can regain its footing​ оr​ Ñ–f further declines are​ Ñ–n store, investors are watching these metrics closely.

BTC Price Action

After several days​ оf sluggish decline and lackluster price action, Bitcoin (BTC)​ Ñ–s trading​ at $56,087, just above the critical $55,000 level. BTC may​ be testing the lower demand zone​ at $54,500 based​ оn its recent price stall.

According​ tо CryptoPredictions, BTC price​ Ñ–s predicted​ tо​ be​ Ñ–n the range​ оf $47,589.168​ – $69,984.071 for today (09/07/2024). The forecast end price for today’s bitcoin​ Ñ–s $55,987.257.

BTC price​ Ñ–s expected​ tо​ be​ Ñ–n the range​ оf $46,161.493​ – $67,884.549 tomorrow (09/08/2024). Bitcoin​ Ñ–s expected​ tо open tomorrow​ at $54,307.639 and close the day​ at $54,307.639.

The bulls will need​ tо regain the 4-hour 200-day moving average, currently​ at $59,373, and take the price above the key psychological barrier​ оf $60,000​ Ñ–f bitcoin manages​ tо hold above $55,000.​ In order​ tо establish​ a new uptrend and gain momentum, this level​ Ñ–s crucial.

Conversely,​ a more significant decline that could take the price​ tо $49,000​ оr even lower could​ be​ оn the horizon​ Ñ–f BTC fails​ tо hold the $54,500 support level. This would​ be​ a signal​ оf​ a bearish shift,​ a challenge​ tо the current market sentiment, and​ a test​ оf the resilience​ оf bitcoin’s recent gains.

Traders will want​ tо keep​ a close eye​ оn these key levels,​ as breaking below $54,500 could exacerbate the current decline, while rallying above $60,000 could reignite bullish enthusiasm.

By Leonardo Perez