Bitcoin's 30-day spot demand has sharply declined to nearly -170,000 BTC, according to CryptoQuant analyst ScenarioX. This follows a brief recovery to around -80,000 BTC in early July. Despite the drop in spot demand, Bitcoin's price remains stable due to reduced short-term selling pressure and short covering in the derivatives market.
ScenarioX highlights that the current derivatives demand is insufficient to sustain a long-term upward trend, leaving the market structure fragile. A resurgence in spot selling pressure could lead to a significant downturn, while continued sluggish spot selling might allow for a derivatives-driven technical rebound. However, without strong spot demand, such rebounds are likely to culminate in large-scale long liquidations.
CryptoQuant Warns of Weak BTC Spot Demand and Long Liquidation Risk
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