Bitcoin (BTC) has experienced a steady price decline over the past week, falling by approximately 3.7% as trading activity shows signs of a possible sell-off or profit-taking phase.
After peaking above $123,000 earlier last month, the leading cryptocurrency has been trading within the $113,000 to $114,000 range in the past day. At the time of writing, BTC is valued at $114,420, reflecting uncertainty in market momentum.
This metric tracks how much Bitcoin is accessible for sale relative to the pace of market activity. Normally, reduced supply would lead to upward price pressure. However, Arab Chain notes that insufficient new demand left the market vulnerable, resulting in the opposite effect.
The analysis suggests that market fragility could persist unless fresh demand enters the market. Historically, periods of constrained liquidity combined with a lack of large-scale buyers have led to prolonged corrections in Bitcoin’s price trajectory.
This inconsistent participation from ETFs, which have become a major driver of Bitcoin demand since their approval, contributed to weaker price resilience during sell-offs.
Additionally, on-chain data showed that “smart portfolios,” or high-value addresses typically associated with strategic accumulation, exhibited only modest buying activity during the recent downturn.
Although accumulation signals long-term confidence, its slow and limited pace failed to counterbalance selling pressure in real time. This lack of immediate demand further weakened market support.
Featured image created with DALL-E, Chart from TradingView
