Bitcoin Market Enters Caution Zone Amid Rising Sell-Side Pressure, Analyst Says

Bitcoin has experienced a modest 3.6% gain recently but faces potential price decline due to weak demand. Apparent Demand for Bitcoin has turned negative, with new buying failing to match selling pressure. This indicates an imbalance where selling from miners and long-term holders surpasses new purchases. Negative Apparent Demand creates a high-risk environment, potentially leading to a price correction. The $100,000 level is a crucial support point for Bitcoin in this scenario. Selling by long-term holders signals a belief that a market peak has been reached. Market rallies may struggle due to the readily available supply, and support might be weaker than expected. However, other indicators, like Binary Coin Days Destroyed, suggest healthy consolidation. Easing geopolitical tensions and positive macroeconomic developments could trigger a rally. The rising short-term holder floor price also suggests a lower risk of a large pullback. Currently, Bitcoin is trading at $107,500, reflecting recent instability.