Cryptocurrency market analyst CW stated that despite Bitcoin’s recent price drop, demand indicators continue to improve. According to the analyst’s data, while demand in the futures market de
Cryptocurrency market analyst CW stated that despite Bitcoin’s recent price drop, demand indicators continue to improve. According to the analyst’s data, while demand in the futures market declined slightly compared to the previous day, the negative value in spot demand narrowed significantly.
The spot demand indicator has not yet moved into positive territory. Therefore, the data does not indicate a definite bull run in Bitcoin. However, the fact that the indicator, which has been in negative territory for a long time, is approaching zero has been interpreted as investors who are directly buying BTC starting to balance the selling pressure.
While futures demand can be affected by leveraged positions, spot demand is used to measure more sustained purchasing power entering the market. Therefore, it is considered healthier for price recoveries to be supported by spot purchases rather than solely by futures trading.
According to CW, the indicator moving into positive territory could create stronger upward momentum for Bitcoin. However, current data only shows a slowdown in the deterioration of demand; a positive demand reversal has not yet occurred.
*This is not investment advice.
Continue Reading: Despite Bitcoin’s Recent Drop, This Data Is Showing a Reversal: What Does It Mean?
