Glassnode, Bitcoin Issued a Red Alert: Sharp Decline in Demand Momentum! - Coin Bulletin

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On-chain data provided by Glassnode shows that short-term demand momentum continues to weaken in the Bitcoin (BTC) market.

The amount of revived capital (Hot Capital) in the last seven days has fallen by 66.7% from its peak of $96.2 billion on December 12th to $32 billion. This indicates that the market is not supported by short-term investors.

Decline in Stock Market Volumes

A similar weakness is also observed in Bitcoin exchange volumes. The 30-day average of Exchange Volume Momentum is approaching the annual average, confirming a decrease in capital inflows. This indicates that the market has lost momentum, especially after reaching a peak of $102,000 in December.

Neutral Call Rates

Funding rates also support the weakening demand. The 7-day moving average (7D-MA) funding rate and the rates from three major perpetual markets continue to remain below the neutral value (0.01%). This indicates that aggressive buyers are not present in the market and the current rally is not supported by strong demand.

Expectation of Consolidation or Correction

Analysts predict that with this weakening short-term demand, Bitcoin may either enter a sideways consolidation phase or face a deeper price correction. In the current market conditions, investors are expected to be more cautious unless there is a new catalyst.

BTC-0.98%
D-1.77%
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