Bitcoin demand turns negative, signaling a potential distribution phase as more BTC is sold than bought on exchanges.
Price weakness suggests smart money may be exiting, while long-term investors can use DCA and lower buy orders for opportunities.
Monitoring whale activity and trading volume is crucial, as strong rebounds often follow deep sell-offs, marking potential bottoms.
CryptoBusy reports that Bitcoin demand has hit its weakest point this year. The latest on-chain data reveals negative apparent demand for the first time since December 2024. This shift suggests that more Bitcoin is being sold than bought on exchanges. Consequently, market sentiment is shifting, and smart money might be exiting positions. This phase marks a significant transition in Bitcoin's market cycle.
Source: CryptoBusy
Bitcoin's Demand Decline and Market Trends
Bitcoin's apparent demand has been in decline since mid-February. Initially, demand remained positive, but it gradually weakened. The price fluctuated between $87,500 and $102,500. However, demand sharply dropped in late February.
By early March, apparent demand turned negative, signaling increased selling pressure. Bitcoin's price fell below $90,000 as the red bars on the demand chart grew larger. Additionally, the 30-day simple moving average (SMA) of demand confirmed a persistent decline. This shift indicates a potential distribution phase, where long-term holders might be selling their positions.
Key Market Strategies for Investors
Given the negative demand, investors should consider strategic actions. Dollar-cost averaging (DCA) presents a viable option for long-term bulls. Buying Bitcoin systematically during price declines reduces overall investment risk.
Besides DCA, setting lower buy orders is essential. Historically, Bitcoin finds support 30-40% below its recent all-time highs, making the $65,000-$75,000 range crucial. Monitoring whale activity is also critical. Large wallet movements often indicate institutional buying when retail investors panic. True market bottoms form when massive sell-offs are followed by strong rebounds. A surge in trading volume alongside deep price corrections often signals a potential recovery.
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Bitcoin Demand Turns Negative: Market Signals Distribution Phase
Bitcoin demand turns negative, signaling a potential distribution phase as more BTC is sold than bought on exchanges.
Price weakness suggests smart money may be exiting, while long-term investors can use DCA and lower buy orders for opportunities.
Monitoring whale activity and trading volume is crucial, as strong rebounds often follow deep sell-offs, marking potential bottoms.
CryptoBusy reports that Bitcoin demand has hit its weakest point this year. The latest on-chain data reveals negative apparent demand for the first time since December 2024. This shift suggests that more Bitcoin is being sold than bought on exchanges. Consequently, market sentiment is shifting, and smart money might be exiting positions. This phase marks a significant transition in Bitcoin's market cycle.
Source: CryptoBusy
Bitcoin's Demand Decline and Market Trends
Bitcoin's apparent demand has been in decline since mid-February. Initially, demand remained positive, but it gradually weakened. The price fluctuated between $87,500 and $102,500. However, demand sharply dropped in late February.
By early March, apparent demand turned negative, signaling increased selling pressure. Bitcoin's price fell below $90,000 as the red bars on the demand chart grew larger. Additionally, the 30-day simple moving average (SMA) of demand confirmed a persistent decline. This shift indicates a potential distribution phase, where long-term holders might be selling their positions.
Key Market Strategies for Investors
Given the negative demand, investors should consider strategic actions. Dollar-cost averaging (DCA) presents a viable option for long-term bulls. Buying Bitcoin systematically during price declines reduces overall investment risk.
Besides DCA, setting lower buy orders is essential. Historically, Bitcoin finds support 30-40% below its recent all-time highs, making the $65,000-$75,000 range crucial. Monitoring whale activity is also critical. Large wallet movements often indicate institutional buying when retail investors panic. True market bottoms form when massive sell-offs are followed by strong rebounds. A surge in trading volume alongside deep price corrections often signals a potential recovery.
The post Bitcoin Demand Turns Negative: Market Signals Distribution Phase appears on Crypto Front News. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.