Bitcoin Demand Turns Positive After Three-Month Slump, Signaling Renewed Accumulation
On-chain data from CryptoQuant shows visible Bitcoin demand shifted from negative to positive for the first time in three months, with a notable +1,200 BTC increase recorded on February 16. The 30-day aggregate visible demand metric reversed its downward trend that began in December, indicating renewed buying from both institutional and retail investors. The metric measures market depth by comparing daily block rewards to changes in supply inactive for a year. As Bitcoin holds near the $65,000 range, buy orders have intensified and liquidity flows have flipped, coinciding with narrowing gaps between the 30-day simple moving average and market price. Analysts interpret the swing as reduced selling pressure and increased accumulation by long-term holders; if sustained, the shift could remove downward pressure on price and set conditions for a fresh rally toward prior highs. Traders should monitor whether visible demand remains positive, on-chain flows, exchange outflows, and price action around key technical levels to confirm a durable trend change. Disclaimer: not investment advice.
Bullish
The shift of the 30-day visible demand metric from negative to positive — highlighted by a +1,200 BTC increase on February 16 — is a meaningful on-chain signal that selling pressure has eased and accumulation resumed. Historically, prolonged negative demand metrics correlate with price retracements; conversely, sustained positive demand often precedes rallies because it reflects fresh buyer liquidity and exchange outflows. The alignment with technical factors (Bitcoin around $65k and a narrowing gap to the 30-day SMA) strengthens the bullish case: buyers are absorbing supply and moving coins off-market. In the short term, traders can expect reduced volatility to the downside and potential tests of recent resistance levels if visible demand persists. In the medium-to-long term, continued institutional accumulation and persistent exchange outflows could tighten supply and support a renewed push toward prior highs. Risks remain: a re-acceleration of macro headwinds, profit-taking, or a failure of demand to hold would negate the bullish bias. Therefore traders should watch confirmation signals — sustained positive on-chain demand, net exchange outflows, and price closing above short- and mid-term moving averages — before increasing directional exposure.