Bitcoin's Rally Halted by Selling Pressure and Reduced Demand

Bitcoin's brief rally past $82k on September 3 was short-lived, as it encountered selling pressure around its 365-Day Moving Average of $82,268. Federal Reserve Governor Christopher Waller's comments indicating his support for keeping interest rates steady and the influx of $730.8 million in net inflows into spot Bitcoin ETFs contributed to the initial uptick.

However, onchain metrics from CryptoQuant showed signs that the rally might be cooling. The Apparent Demand metric tracked a reduction in demand, reflecting stalling accumulation near key swing resistance levels. Meanwhile, the Coinbase Premium Index, which measures increased demand from U.S.-based investors, briefly climbed into positive territory but has since slumped.

Crypto analyst Axel Adler Jr pointed out that the Bitcoin Capital and Flow Regime Index had been at its maximum level for six consecutive days, a signal often followed by a price decline in bear market regimes. Additionally, May's $82,850 swing high remained an obstacle for bulls, and weakening demand around $82k could trigger a deeper retracement.