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Is Bitcoin due for a pullback? – THESE key datasets suggest…
Bitcoin’s market environment has become increasingly fragile, with various on-chain metrics flashing warning signs of impending weakness. As the price continues to hover near $108K, it appears that several fundamental factors may be poised to bring about a correction.
The first and most significant concern is that the Apparent Demand metric has turned negative once more. This shift highlights renewed distribution from experienced holders and miners, exposing Bitcoin to short-term downside risks amid waning organic demand and limited new capital inflows.
Source: CryptoQuant
Furthermore, rising miner profitability may also be a precursor to increased selling pressure. The Puell Multiple has surged 25.73% to reach 1.26, indicating that miners are now significantly more profitable than usual – an often seen development preceding increased selling activity.
Coincidentally, the NVT Ratio also jumped 84.17% to 55.17, highlighting a mismatch between market capitalization and transaction volume. This metric is historically unreliable as an indicator of price action; however, it does hint at the possibility of overvaluation within the market.
In tandem with this data, exchange inflows have turned positive, with $57.5 million in fresh capital deposited onto exchanges – the first notable influx in a sea of outflows. While these deposits may seem like a vote of confidence in the market’s prospects, they could also signify that investors are preparing to sell their Bitcoin holdings.
As such, it is essential to acknowledge that exchange activity, when combined with negative DAA divergence and a high percentage of profitable UTXOs, paints an unsettling picture for bulls. This confluence of metrics suggests that the cryptocurrency may struggle to sustain its current momentum in the near term.
Sources: CryptoQuant and CoinGlass
Source: ambcrypto.com
