Bitcoin’s network valuation outpaces activity as demand weakens and supply pressures rise.
Exchange inflows and negative DAA divergences suggest that despite price stability, sell-off risks remain.
Bitcoin market conditions are becoming increasingly fragile, with key demand indicators turning bearish while supply-side signals strengthen across multiple metrics. However, this uptick contrasts with underlying on-chain weakness. Apparent demand, which measures the ability of new buyers to absorb supply from miners and long-term holders, has once again turned negative. Bitcoin faces short-term downside risks.
Meanwhile, Bitcoin’s NVT ratio also surged 84.17% to 55.17, indicating that market capitalization is outpacing trading volume. This is a common sign of overvaluation. Additionally, BTC saw a net inflow of $57.5 million in the current environment, the first notable positive inflow after a large outflow. Exchange net flows turning green suggest that investors may be preparing to sell as more coins are deposited on exchanges.
Combined, these indicators suggest that while prices remain elevated, underlying network activity and supply dynamics are not aligned. This imbalance could cause a pullback in Bitcoin, especially if demand cannot absorb these coins and miners may soon sell off Bitcoin. Given these rising warning signs, bulls are advised to proceed with caution.
BTCUSDT BTCUSD BTCUSD BTCUSD BTCUSD BTCUSD
Exchange inflows and negative DAA divergences suggest that despite price stability, sell-off risks remain.
Bitcoin market conditions are becoming increasingly fragile, with key demand indicators turning bearish while supply-side signals strengthen across multiple metrics. However, this uptick contrasts with underlying on-chain weakness. Apparent demand, which measures the ability of new buyers to absorb supply from miners and long-term holders, has once again turned negative. Bitcoin faces short-term downside risks.
Meanwhile, Bitcoin’s NVT ratio also surged 84.17% to 55.17, indicating that market capitalization is outpacing trading volume. This is a common sign of overvaluation. Additionally, BTC saw a net inflow of $57.5 million in the current environment, the first notable positive inflow after a large outflow. Exchange net flows turning green suggest that investors may be preparing to sell as more coins are deposited on exchanges.
Combined, these indicators suggest that while prices remain elevated, underlying network activity and supply dynamics are not aligned. This imbalance could cause a pullback in Bitcoin, especially if demand cannot absorb these coins and miners may soon sell off Bitcoin. Given these rising warning signs, bulls are advised to proceed with caution.
BTCUSDT BTCUSD BTCUSD BTCUSD BTCUSD BTCUSD 
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Good at solving all trading problems, doubling the account in a week, and making a stable profit of 300% in a month
🚀Private VIP: t.me/HenryDovitt
👍Market exclusive signal: t.me/Henryffjyfylffc108
🚀Private VIP: t.me/HenryDovitt
👍Market exclusive signal: t.me/Henryffjyfylffc108
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.