Easing Demand Contraction Fails to Spark Sustained Bitcoin Rally

Bitcoin's demand contraction appears to be easing, but for a strong and sustained rally to take place, more signals are needed.

The Apparent Demand indicator, which tracks the extent to which Bitcoin's new supply is being absorbed, suggests an improvement on the demand side. However, according to CryptoQuant, this current outlook reflects a transition to demand stability rather than a strong demand expansion just yet.

Historically, when the Apparent Demand indicator formed bottoms in negative territory, it consistently hit higher levels following the sharp contraction in May and June. This structure indicates that sell-side pressure on Bitcoin is losing intensity and that the imbalance remains more limited with each new demand contraction.