Bitcoin Price Prediction: On-chain indicators show slowing demand, BTC hovering below $120,000

Bitcoin (BTC) prices have recently stagnated, failing to break through its ATH. Although prices broke above $123,000 earlier this month, a slight pullback occurred afterward, with the current price around $119,343. Despite a 2% rise over the past week, it remains below recent highs, and the market appears to have entered a consolidation phase, reflecting discrepancies in on-chain indicators and regional demand signals.

The weakening demand from the United States and South Korea reflects changes in market sentiment According to an analysis by CryptoQuant, the demand in the two historically significant markets for Bitcoin trading volume, the United States and South Korea, has noticeably weakened. CryptoQuant analyst Arab Chain pointed out that despite Bitcoin reaching a new high, the main CEX Premium Index in the US (which measures the price difference of Bitcoin between this CEX and other global exchanges) has not risen significantly. The index remains at a level similar to that of June, indicating that US investors have not been actively buying Bitcoin during this rebound.

Arab Chain believes that the index's movement into negative territory during the rise in Bitcoin prices may reflect that American investors are taking profits, which means that some people may be waiting for a pullback to re-enter the market.

Meanwhile, the Korea Premium Index in South Korea has decreased, indicating a weakening demand from retail investors in Korea. This index reflects the price of Bitcoin on Korean exchanges compared to the global average price, and a negative trend suggests that Korean traders are selling Bitcoin on local platforms at prices lower than the global average. This indicates that individual investors in major Asian cryptocurrency hubs may be waiting for discounted prices to enter the market, exhibiting a cautious sentiment.

Exchange capital inflow increases, selling pressure rises Another analyst from CryptoQuant, ShayanMarkets, emphasized that significant changes have occurred in Bitcoin's on-chain activity. The latest data indicates that Bitcoin has experienced the largest net inflow to exchanges since July 2024. This usually suggests that holders are preparing to sell, increasing the supply of Bitcoin, which may exert downward pressure on prices.

ShayanMarkets explains that this behavior, especially when it occurs near ATH, may be the profit-taking of institutions or funds. Such behavior is usually consistent with efforts to reduce risk exposure when the market is overly pumped. Historically, a surge in exchange inflows has often been accompanied by price pullbacks, so this trend is worth close attention.

However, the redistribution of Bitcoin funds may benefit the entire crypto market. Analysts point out that as funds flow out of Bitcoin, other assets may gain more attention, especially if this trend continues, traders may see more volatility and speculative movements of alternative tokens in the short term.

Conclusion The current Bitcoin market is showing signs of consolidation, mainly influenced by weakened demand in the U.S. and South Korean markets, as well as capital inflow into exchanges. Although the market faces pullback pressure, the reallocation of funds may promote the performance of other crypto assets. Investors should continue to pay attention to the price movements of Bitcoin, as well as the potential speculative rebounds that other crypto assets may experience.