Bitcoin (BTC) has shown signs of weakening demand, particularly among institutional investors, despite recent net cash inflows. On-chain data from CryptoQuant reveals a notable decline in net Bitcoin demand over recent weeks.
Key Demand Metrics
- 895K Fewer Coins Purchased: Investors reduced BTC demand by approximately 895,000 coins in the past 30 days.
- Short Leverage Impact: Elevated short positions have contributed to midterm bearish sentiment.
👉 Why institutional demand matters for Bitcoin’s price
Bitcoin Price Rebounds with Bullish Signals
BTC price surged past the critical $108,360 resistance level on July 3, eyeing the next target at $110,570. Notably:
- 50-Day SMA Reclaimed: Now acting as support, reinforcing bullish momentum.
- All-Time High Retest: BTC aims to challenge its ATH near $112,000.
On-Chain Insights
- Whale Selling Pressure Eases: U.S. institutional investors have slowed sell-offs, per CryptoQuant.
- Trend Breakout: BTC invalidated a prior downtrend by closing above a logarithmic trendline.
Technical Analysis: Bullish vs. Bearish Scenarios
Bullish Indicators
- MACD Momentum: Daily MACD histograms grow above zero, signaling strengthening bullish sentiment.
- Historical July Gains: BTC has historically posted positive monthly returns in July (10-year average).
Bearish Risks
- Potential Double Top: A rejection at the ATH (~$111,814) could form a double-top pattern.
- RSI Divergence: Daily RSI hints at bearish divergence, urging caution until a sustained close above $112K.
👉 How to interpret Bitcoin’s MACD and RSI signals
FAQs
Why is Bitcoin demand declining?
Reduced institutional inflows and profit-taking by short-term holders have curbed demand.
What’s driving BTC’s recent price surge?
Breaking key resistance levels and declining sell pressure from whales have fueled the rally.
Could BTC face another downturn?
Yes, if it fails to hold above $112K, a double-top rejection may trigger a correction.
How reliable are July price trends for BTC?
Historically, July has been favorable, but past performance doesn’t guarantee future results.
Keywords: Bitcoin demand, BTC price prediction, institutional investors, CryptoQuant, MACD, RSI, double top
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