On-Chain Data Signals Weakening BTC Sell Pressure as Spot Demand Recovers

Bitcoin moved higher this week, touching a one-month high at $74,000 as selling pressure across crypto markets eased. A report from the on-chain analytics platform CryptoQuant said reduced supply from sellers and improving demand signals helped support the short-term rebound.

One indicator of the shift is the change in apparent spot demand for Bitcoin. According to the analytics firm, demand contraction stood at about -136,000 BTC at the start of 2026. It has since narrowed to around -25,000 BTC, signaling that selling pressure in spot markets has weakened.

Strong Support From Long-Term Holders Eases Market Pressure

Another key signal came from the Coinbase Premium Index, which tracks price differences between Coinbase and offshore exchanges. The index moved into positive territory, often interpreted as stronger buying interest from United States-based market participants.

CryptoQuant also noted that many market participants now hold unrealized losses similar to levels seen in July 2022. At the same time, long-term holders sharply reduced their selling over the past thirty days. Their combined outflows dropped to about 276,000 BTC, far below the 904,000 BTC recorded in November.

The slowdown marks the lowest monthly outflow from long-term holders since June 2025 and helps ease supply pressure. Reduced selling from this group often limits immediate downward momentum in the market during uncertain periods.

Despite the rebound, analysts warn that Bitcoin could soon face resistance near the $79,000 level if momentum continues. A higher ceiling may exist around $90,000, corresponding to the broader realized price for active market participants and previously limiting gains earlier this year.

Market Optimism Remains Cautious Despite Recent Rebound

Broader sentiment indicators remain weak despite the recent price move, as per CryptoQuant market data. Its Bull Score Index currently stands near 10 out of 100, reflecting limited bullish signals.

The analytics platform describes the move as a relief rally rather than a sustained upward cycle. It warns that macroeconomic pressure and cautious sentiment could still limit further advances in the near term.

CryptoQuant also notes that broader global liquidity conditions and interest rate expectations continue to shape digital asset demand worldwide. These factors may influence market behavior and determine whether the current rebound can persist over the coming months.

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