Bitcoin demand is showing signs of slowing down after a period of rapid growth, with momentum fading after prices approached $112,000, according to Julio Moreno, head of research at cryptocurrency analytics firm CryptoQuant.
Following today’s events that led to escalating Iran-US tensions, the Bitcoin price has fallen below the $100,000 mark, which it has been hovering above for a long time.
According to Moreno, demand is still increasing in spot markets, but the growth rate has fallen below the historical trend.
Moreno stated that Bitcoin purchases made by whales and ETFs have decreased by half, and that demand from new investors is also decreasing. In the futures market, investors have recently started to open new short positions by taking profits.
If this weakening in demand continues, according to Moreno, Bitcoin could be a support point at the $92,000 level, which corresponds to the average cost of investors on the chain. This level is considered a typical support area, usually seen in bull markets. However, if this support is broken, the next important support level is around $81,000, which represents the lower band of the average cost of investors.
*This is not investment advice.
Read the full article here
