Crypto analysis firm Glassnode, Bitcoin $94,821.2He stated that (BTC) may trend sideways or experience further correction due to weakening buying pressure.
Declining Short-Term Demand
Glassnode announced on social media platform X that BTC’s short-term demand momentum has decreased.
“One key indicator: Hot Capital fell 66.7% from its December 12 peak to $32.0 billion,” Glassnode said. he said.
The firm noted that BTC’s declining exchange volume momentum and lower funds rates also indicate reduced demand.
“The 30-day average stock market volume is approaching the 365-day average, reflecting reduced capital flows since the December market peak,” Glassnode said. he said.
Low Funding Rates
Funds rates in the top three permanent markets also remain below neutral, Glassnode said. This suggests that despite the brief rally to $102,000, demand from aggressive buyers did not continue.
“Without a new catalyst, declining short-term demand indicates an increased likelihood of either a period of sideways consolidation or a further correction,” the firm said. he said.
Bitcoin is trading at $92,579 at the time of writing. The crypto asset with the highest market cap has lost nearly 3% in the last 24 hours and more than 4% in the last seven days. BTC is down over 14% from its all-time high.
Bitcoin’s current situation requires investors to carefully monitor future movements. Decreasing demand and capital flows could indicate significant changes in the crypto market.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
