Bitcoin Indicator Returns to Positive Zone, Demand Decreases

The Bitcoin indicator has returned to the positive zone after eight months of bearish momentum. CryptoQuant notes that to confirm the reversal, the indicator needs to rise to 20-30 in the coming weeks. However, visible demand for Bitcoin has decreased again, creating the risk of a new decline. Analyst Darkfost points to the behavior of short-term Bitcoin holders, who in August realized an average profit of up to 15%, exceeding 11% during the historical peak. This level of profitability may create additional selling pressure. If the pressure is absorbed by demand, short-term holders may reduce profit-taking activity and begin to hold Bitcoin for longer periods. However, Darkfost also noted that the visible demand metric has once again moved into negative territory, indicating a contraction in demand for Bitcoin. Without a recovery in demand soon, Bitcoin may enter a new phase of decline.

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