Weak Demand Weighs on Bitcoin Price as Bull Signal Emerges

Bitcoin's price remains under pressure as new data points to weak spot demand in the market. Despite rising futures activity, on-chain spot demand is net negative, which raises questions about whether the market is close to a bottom or if another decline is possible before buyers return.

Ki Young Ju noted that Bitcoin is currently futures-driven, with open interest rising while spot demand remains weak. A lasting move higher typically requires both spot and futures demand, and without stronger spot activity, a rally may struggle to hold its gains.

However, another market signal is giving Bitcoin bulls reason to stay hopeful. CW8900 identified a second early bull signal on BTC, which the analyst believes could be a possible bottom signal. The previous rally did not enter an overheated bull phase, and the extreme bear phase was short, suggesting that the market may have been preparing for a rally.

The large Bitcoin transfers from treasury firms Metaplanet and Hut 8 are also drawing market attention. While these movements can be significant, it's essential to note that they do not necessarily mean the coins will be sold into the market. If they are later sold, the extra supply could add pressure on the price.