Bitcoin is trading within 3% of its $111,814 record high despite flashing a negative on-chain demand signal, revealing underlying market fragility. The apparent demand metric has turned red as new buyer appetite weakens relative to available supply, with notable selling pressure emerging from long-term holders and miners near technical resistance zones.
Short-term technical analysis shows bullish momentum remains intact, as Bitcoin currently trades above its 20-day moving average with an RSI reading of 56.89. However, maintaining bullish control requires decisive consolidation above the critical $111,000 resistance barrier. Market uncertainty is compounded by macro headwinds including Federal Reserve Chair Jerome Powell’s monetary policy stance and prevailing political pressures.
Analysts emphasize that Bitcoin’s supply-demand equilibrium has entered a delicate phase, urging market participants to closely monitor the coin’s next price movements as these competing forces resolve.