CryptoQuant’s research head has pointed out how demand to absorb Bitcoin at higher prices has been low recently, potentially explaining the asset’s decline.
This isn’t the signal Moreno focuses on, however. Instead, the CryptoQuant head checks for whether there is enough demand coming in to absorb the supply that the long-term holders are selling at higher prices.
Now, here is the chart shared by Moreno that shows the trend in the 30-day and 1-year versions of the Bitcoin Apparent Demand over the last few years:
As displayed in the above graph, the Bitcoin Apparent Demand has been red on the 30-day during the last few weeks, implying a negative short-term demand for the cryptocurrency. “Is there enough demand to absorb the supply at higher prices?” asked the analyst. “Since a few weeks ago the answer is no, and that is why we see prices declining.”
The story is a bit different when it comes to the 1-year Apparent Demand, which has actually seen some growth recently, but the pace of its rise has been slow, and its value is still below the 90-day simple moving average (SMA).
The last time Bitcoin saw an extended phase of negative 30-day Apparent Demand was during the bearish phase in the first half of the year. It now remains to be seen whether something similar will follow this time as well, or if demand will bounce back.
At the time of writing, Bitcoin is floating around $103,900, down 9% over the last seven days.
