- Bitcoin’s price growth mirrors demand levels, with declines since December reflecting lower activity.
- November saw demand exceed 240K BTC, leading to over 40% price gains before a sharp slowdown.
- Renewed demand spikes are needed for Bitcoin to regain upward momentum and sustain a rally.
Bitcoin’s price performance continues to closely follow apparent demand growth, as shown in the latest data shared by analyst Julio Moreno. According to the chart, Bitcoin’s 30-day price percentage change aligns with its apparent demand levels, with positive demand (green bars) coinciding with price increases and negative demand (red bars) leading to price drops.
However, since early December, a clear slowdown in demand growth has been observed, which aligns with Bitcoin’s cooling momentum during the same period. Currently, the blue shaded area representing price change remains subdued, reflecting the reduced demand activity.
The chart highlights a sharp demand surge in November, where apparent demand exceeded 240K BTC, leading to a 30-day price gain of over 40%. However, from December onward, demand fell sharply, moving below 80K BTC by January, leading to corresponding declines in Bitcoin’s price growth.
This relationship underscores the critical role demand plays in driving Bitcoin’s market dynamics. Moreno stresses the importance of monitoring apparent demand trends, stating, “Demand growth has been slowing down since early December, and so have Bitcoin’s gains.” This signals that Bitcoin’s ability to sustain price rallies depends heavily on revitalized demand levels.
Slowing Demand Growth and Bitcoin’s Future Outlook
Despite the current slowdown, there is still optimism for a potential rebound, with market watchers closely analyzing whether demand can pick up again to drive the next rally. Historically, Bitcoin’s rallies have been preceded by sustained demand spikes, and the current plateau might serve as a base for future growth.
The green bars on the chart indicate occasional demand increases, which could signal early signs of renewed interest, though these need to sustain over a longer period to impact price trends meaningfully.
In conclusion, Bitcoin’s near-term price trajectory remains tied to its apparent demand dynamics, with subdued activity currently weighing on price growth. As Moreno aptly notes, “Monitor demand growth to anticipate Bitcoin’s next rally,” emphasizing the importance of tracking these key metrics for insights into future price movements.
With Bitcoin’s ability to rally hinging on demand recovery, the coming weeks will be crucial in determining whether the current stagnation transitions into renewed momentum or further declines.
