Despite Bitcoin’s recent bullish setup, we could be in for yet another frustrating ordeal as the apparent on-chain demand metric has shifted back into negative territory, analyst DarkFost argues. The largest cryptocurrency by market capitalization’s fresh concerns come as the price rally has stalled below the $80k resistance level. BTC is currently trading around $77k at press time.
Darkfost, a verified contributor for major analytics firm CryptoQuant, tweeted:
He attached the following graph with the tweet:
Apparent demand is calculated as a 30-day sum of the daily block reward minus the daily change in one-year inactive supply. In simpler terms, it measures buying interest relative to the new supply entering the crypto market.
The graph shows that demand rose and turned positive around mid-August, when BTC registered its 30% price recovery. The short-term euphoria propelled it to a positive setup for a couple of weeks, but now it is wearing thin, and red bars marking negative demand have reappeared across the recent period.
 
The analyst also pointed out that the metric’s deterioration has emerged alongside consistent selling from Short Term Holders (STH) who have been profiteering at current prices after accumulating the crypto at much lower levels.
However, bullish commentators believe BTC has remained steadfast despite such strong selling sentiment, which shows the strength of the current setup. According to them, a major price uptick is imminent.
The Future
The combination of profit-taking and lessening demand is leaving the market open to a price pullback, possibly to the $70k support level. The short-term bullish case isn’t dead yet, as the cryptocurrency can still drop back to the comfortable support level and develop momentum for a bigger upside in the coming weeks.
October, a historically bullish month, is only 4 weeks away, and that could give the bulls reason to feel confident again. However, for a reliable bullish pattern to emerge, upward forces need to muster the courage to move first above $80k and then toward the $90k long-term resistance level.
Investors should follow the market regularly and analytically to make sense of the chaos more effectively. The coming days will test whether buyer interest can reassert itself before the price structure deteriorates further.
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