Bitcoin Faces 0.68% Gain Amid Bearish On-Chain Signals

Bitcoin’s market environment has become increasingly fragile, with key demand metrics flipping bearish while supply-side signals intensify across several indicators. At the time of writing, Bitcoin traded at $108,129.78, reflecting a modest 0.68% gain in the last 24 hours. However, this uptick contrasts sharply with underlying on-chain weakness. Apparent Demand, which measures the ability of new buyers to absorb supply from miners and long-term holders, has turned negative again. This shift highlights renewed distribution from experienced holders and miners, exposing Bitcoin to short-term downside risks amid fading organic demand and limited new capital inflow.

At the time of writing, the Puell Multiple jumped 25.73% to 1.26, indicating that miners are now significantly more profitable than usual, often a precursor to increased selling pressure. Simultaneously, Bitcoin’s NVT Ratio also spiked 84.17% to 55.17, showing that market cap is outpacing transaction volume. This is a common signal of overvaluation. Together, these metrics suggest that while price remains elevated, underlying network activity and supply dynamics are misaligned. This imbalance could expose Bitcoin to a pullback, especially if demand fails to absorb coins, miners may soon offload into the market. Caution is advised amid these rising warning signs.

As of writing, over 98.82% of UTXOs were in profit, while only 1.17% were in loss, signaling that most holders sit on unrealized gains. Although this could suggest strength, it also means fewer market participants are incentivized to buy the dip. Moreover, such a skewed profit/loss distribution often precedes local tops, where profit-taking becomes widespread. The lack of loss-heavy holders also weakens psychological support zones, making price floors less reliable.

At press time, BTC registered a net inflow of $57.5 million—the first notable positive flow in a sea of outflows. Exchange netflows turning green signal that investors may be preparing to sell, as more coins are being deposited onto exchanges. This shift in exchange activity could indicate a reversal in market sentiment, with holders moving from accumulation to distribution. Given the backdrop of weak demand and overbought signals, rising exchange deposits could apply additional pressure on BTC’s price if followed by increased sell orders.

Despite BTC’s price hovering near $108K, the DAA divergence chart remains deeply red. This shows that growth in active addresses continues to lag behind price action, signaling that speculative price moves are not being backed by real user adoption. Historically, negative DAA divergence has foreshadowed corrections, especially when price climbs while address activity stagnates or declines. The current extended red zone in divergence raises concern that market strength is surface-level and lacks fundamental support.

Bitcoin continues to trade above $108K, but multiple on-chain signals point to growing weakness beneath the surface. Rising miner profitability, positive exchange netflows, and a surging NVT Ratio indicate increasing sell-side pressure and possible overvaluation. Meanwhile, negative DAA divergence and a high percentage of profitable UTXOs suggest limited buyer support. Without a meaningful recovery in demand and network activity, BTC could face heightened volatility and struggle to sustain its current position in the near term.

In summary, Bitcoin’s current market conditions suggest a potential pullback due to several key datasets. The negative Apparent Demand, rising miner profitability, and overvaluation signals indicated by the NVT Ratio all point to increasing sell-side pressure. Additionally, the high percentage of profitable UTXOs and the negative DAA divergence suggest limited buyer support and a lack of real user adoption. These factors combined indicate that Bitcoin may be due for a pullback in the near term, despite its recent price stability.