BTC Demand Collapses, Stalling Price Rally Below $80K

Bitcoin's recent price rally has stalled below the $80k resistance level, and a key on-chain metric suggests demand may be dwindling.

According to CryptoQuant analyst DarkFost, the apparent on-chain demand metric has turned negative once again. This metric measures buying interest relative to new supply entering the market and is calculated as a 30-day sum of daily block rewards minus the daily change in one-year inactive supply.

The graph shows that demand rose and turned positive around mid-August when BTC registered its 30% price recovery. However, this short-term euphoria has worn off, and red bars marking negative demand have reappeared across recent periods.

Bullish commentators believe BTC remains strong despite selling sentiment, predicting a major price uptick is imminent. However, some analysts warn of a potential pullback to the $70k support level if buyer interest cannot reassert itself.