Bitcoin trades just above $112,000, after the market broke out from its consolidation range of over two weeks. This sharp fall has caused concern among investors and Short-Term Holdings (STH) who are now faced with the dilemma of either realizing their losses or continuing to hold positions that have become underwater. Darkfost, the top analyst, shared some key insights that suggest Bitcoin’s demand is still strong, even with price volatility.
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According to Darkfost, the Apparent Demand metric—comparing new BTC issuance to over one-year inactive supply—indicates that the market is still absorbing supply effectively. The ratio remains positive and indicates that new supply continues to be outpaced by demand. In the last 30 days, 160,000 BTC were accumulated. This shows that buyers are still buying despite price corrections.
Although sentiments among STH The market’s structure is healthy despite the fact that it has suffered a recent drop. Investors who have a longer-term horizon continue to increase their holdings, indicating confidence in Bitcoin’s long-term potential. BTC is stabilizing around $112K. Participants are watching closely for any potential correction or reversal.
The demand from Accumulator Addresses, OTC Desks, and other Desks signals a strong conviction
Darkfost and other critical highlights insights This metric tracks addresses that only have acquired Bitcoin, without any previous history of sales. This indicator gives a good idea of the dynamics in demand and how long-term holders are holding on to their Bitcoins.
In the last one month, these addresses have increased their average BTC by approximately 50,000 BTC. These figures show a steady and persistent buying behavior, in spite of recent price fluctuations. This behavior shows that long-term investors are confident and taking advantage of the market’s dips in order to increase their position.
BTC that is held by OTC Desks represents a long-term, strategic pattern of demand. OTC activity is less obvious in the immediate price movement, but offers a glimpse into institutional player intentions.
From September 20, 21 to today, BTC supply on OTC Desks has fallen sharply from approximately 550,000 BTC. The sharp decline in BTC supply on OTC desks since September 2021 indicates that the number of large buyers is consistently taking Bitcoin out of circulation. This reduces the amount available for institutional entry.
The overall picture of demand remains positive, whether we look at short-term or long-term OTC patterns. In spite of recent volatility and short-term profit taking, demand-side indicator do not show any major structural weaknesses.
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Bitcoin faces key resistance after rebounding from local lows
Bitcoin’s current price is $114 476, showing some signs of stability after the sharp fall to $111 971 earlier in this week. BTC is still below $115,724 which corresponds to the lower limit of the prior consolidation range. The SMA 50 days is at $100,228 and provides a strong technical foundation. Meanwhile, the SMA 100 days at $95,433 continues to be a major medium-term resistance zone. At $77,282 the 200-day SMA confirms a long-term upward trend.
Bitcoin’s recent volatility has not changed the price structure of Bitcoin. As long as BTC continues to maintain higher lows over the $10K mark, the outlook is bullish. The $122,077 barrier remains critical. A break above this level will signal an aggressive bullish trend towards higher highs.
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This retracement has seen a decrease in volume, indicating a lack of overwhelming selling pressure. BTC could increase its chances of making another attempt to break out towards $122K if it can successfully regain the zone at $115.724 during the coming session.
Chart from TradingView, Featuring image by Dall-E
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Source: www.newsbtc.com
