On-chain data shows that bitcoin's “apparent demand” indicator has returned to positive. Here's what this could mean for the asset's price.
bitcoin Apparent Demand Has Returned to Positive Territory
in a newx.com/ki_young_ju/status/1846047225425940540″ target=”_blank” rel=”noopener nofollow”> mail On x, Ki Young Ju, founder and CEO of on-chain analytics company CryptoQuant, analyzed the latest trend in bitcoin's apparent demand indicator.
“Apparent demand is the difference between production and inventory changes,” Young Ju notes. “For bitcoin, production refers to mining issuance, while inventory refers to idle supply for more than a year.”
Mining issuance here measures the total amount of btc that miners produce by adding blocks to the network and receiving rewards. At the same time, the one-year idle supply comprises tokens that have not been transferred to the blockchain for more than one year.
Below is the apparent demand graph for bitcoin shared by the analyst.
<img decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/10/Bitcoin-39Apparent-Demand39-Now-Green-Again-What-It-Means.jpeg" alt="Apparent bitcoin Demand” width=”2450″ height=”1406″/>
The trend in the 30-day sum of the metric over the last few years | Source:x.com/ki_young_ju/status/1846047225425940540/photo/1" target="_blank" rel="noopener nofollow"> @ki_young_ju on x
As can be seen from the chart, bitcoin's apparent demand had increased to very positive levels during the rally to the new all-time high (ATH) in the first quarter of the year.
A positive value suggests that the decrease in btc inventory is greater than its production. “If the decrease in inventory exceeds production, demand increases and vice versa,” explains the CEO of CryptoQuant.
However, the high demand for the cryptocurrency could not be sustained as the metric fell to neutral values shortly after the asset's price entered its consolidation phase.
However, this trend of sideways movement around near-neutral levels seems to have finally been broken recently as the metric has seen a positive rise.
So far, the apparent demand has not reached levels as high as during the March ATH, but its current value is still quite notable, indicating that demand for the coin has returned.
Another metric that indicates new demand is coming to bitcoin is the realized limit of new investors, as CryptoQuant author Axel Adler Jr. pointed out in a new article. x.com/AxelAdlerJr/status/1846061911990792621″ rel=”nofollow” target=”_blank”>mail in x.
<img loading="lazy" decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/10/1729080402_738_Bitcoin-39Apparent-Demand39-Now-Green-Again-What-It-Means.jpeg" alt="bitcoin Realized Limit” width=”2048″ height=”1152″/>
The value of the metric appears to have seen a rise in recent days | Source: x.com/AxelAdlerJr/status/1846061911990792621/photo/1" target="_blank" rel="noopener nofollow">@AxelAdlerJr on x
The Realized Cap is an indicator that, in short, tracks the total amount of capital that bitcoin investors as a whole have invested in the cryptocurrency.
The chart shows cap data, specifically for “new investors”, which are holders who purchased their coins within the last month. This metric can represent new capital coming into the asset.
“Demand for coin purchases by new investors has resumed, with an increase of 3% in the last 10 days. This is a positive signal for the market,” says the analyst.
btc Price
bitcoin had approached the $68,000 level earlier in the day, but appears to have experienced a pullback, as it is now back at $66,100.
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Looks like the price of the coin has been on the rise recently | Source: BTCUSDT on TradingView
Dall-E Featured Image, CryptoQuant.com, TradingView.com Chart
