Bitcoin’s recent price action has been a bit of a rollercoaster. After failing to break through $120,000 and then $125,000, it’s now struggling to stay above $115,000. This is causing some jitters in the market.
Fading Momentum: Apparent Demand Slows Down
While Bitcoin hit new all-time highs recently, it’s quickly pulled back. Analyst Axel Adler points to a key on-chain metric: “Apparent Demand.” This measures the activity of newer Bitcoin holders (those who’ve owned for less than a year). A high number shows strong new buying, while a low number suggests less interest from new investors.
Currently, Apparent Demand is around 30,000 BTC – positive, but significantly lower than before. This means new buyers are still around, but their enthusiasm seems to be waning. If this number drops to zero, it could signal a serious lack of new investment. While long-term holders remain confident, this slowdown is a concern, especially as Bitcoin struggles to maintain its price.
Technical Analysis: A Price Squeeze
The technical picture isn’t great either. Bitcoin’s 4-hour chart shows weakness, with several failed attempts to break above $123,000. Key moving averages are crossing, indicating bearish momentum. The $115,000 level is now crucial. A break below could lead to a deeper drop, potentially towards $110,000. Conversely, holding above $115,000 could give bulls a chance to push back towards $118,000. But for now, Bitcoin is stuck between resistance at around $123,000 and support at $115,000. The next few days will be key to determining its next move.