Over the past week, Bitcoin's price gradually recovered to the $108,000 mark, supported by a mild rebound in the broader crypto market.
However, on-chain data suggests this recovery may soon face resistance. Increasing selling pressure from miners and long-term holders (LTHs) could force the crypto asset to relinquish recent gains.
Rising Bitcoin Selling Pressure
CryptoQuant data shows BTC's "realized demand" metric has turned negative again, indicating weakening buying power to absorb growing market supply.
At press time, the 30-day simple moving average (SMA) for this metric stands at -36.98. The realized demand metric evaluates the balance between new market demand and two primary supply sources: newly minted coins and dormant coins moved by LTHs.
Negative values signal that BTC entering the market exceeds new buyers' capacity to absorb it. Despite easing geopolitical tensions involving Israel, Iran, and the U.S., their lingering market impact persists.
BTC’s long/short ratio further supports bearish expectations. The current ratio is 0.96, reflecting a dominance of short-position traders.
This ratio measures the volume of long versus short contracts. Values above 1 indicate bullish sentiment, while figures below 1 (like BTC’s current reading) suggest widespread anticipation of further price declines.
Derivatives market trends align with on-chain demand weakness, reinforcing expectations of a price correction.
Supply Surge May Push Bitcoin Toward $105,000
At publication, BTC trades at $108,102**. If buying momentum fails to offset rising supply, the price could lose its current support level and test the critical **$107,745 zone.
A breakdown below this level might send BTC under $105,000**, potentially sliding toward **$104,709.
👉 Stay updated on Bitcoin’s market movements
Conversely, renewed demand could reverse the trend. Should buying activity rebound, BTC may break through the $109,304** resistance and retest its all-time high near **$111,917.
FAQ Section
Q1: What factors are driving Bitcoin’s current selling pressure?
A: Increased supply from miners and long-term holders, coupled with weak demand, is creating downward pressure.
Q2: How does the long/short ratio affect Bitcoin’s price?
A: A ratio below 1 signals more traders are betting on price declines, often leading to short-term bearish momentum.
Q3: What key support levels should traders watch?
A: $107,745** and **$105,000 are critical levels. A drop below these could trigger further declines.
Q4: Can Bitcoin recover its recent highs?
A: Yes, if buying demand returns, BTC could challenge $109,304** and potentially rebound toward **$111,917.
Q5: Where can I track real-time Bitcoin price trends?
A: 👉 Monitor live BTC data here for the latest market insights.