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Reading: Recovery Signs Are Getting Stronger in Bitcoin: What Do On-Chain Data Say?
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EdaFace Newsfeed > Latest News > Crypto News > Recovery Signs Are Getting Stronger in Bitcoin: What Do On-Chain Data Say?
Crypto News

Recovery Signs Are Getting Stronger in Bitcoin: What Do On-Chain Data Say?

vitalclick
Last updated: March 6, 2026 3:58 am
6 hours ago
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Contents
What is the Status of the Recovery in Demand?Selling Pressure WeakensWhere Does the Market Stand According to the Data?

Bitcoin recently reached its highest value in a month, rising to around $73,000. In the latest report published by KriptoQuant, it is stated that the main reason for this rise is the positive developments in the supply and demand balance on the chain. However, according to the analysis, this recovery should not yet be considered as the footsteps of a long-term bull market.

What is the Status of the Recovery in Demand?

CryptoQuant’s “Bitcoin Apparent Demand” metric measures the balance between new supply and long-term purchases in the market. At the beginning of 2026, the indicator revealed a serious contraction in demand in the spot market around 136,000 BTC. According to the latest data, this difference decreased to 25,000 BTC. It is observed that the contraction in demand has decreased significantly and this change has strengthened the price base of Bitcoin since the beginning of February. However, the demand indicator is still in the negative zone. In other words, although the significant recovery in demand is considered a positive development, the fact that it has not moved into positive territory makes it difficult to see this increase as a permanent trend.

Signs of recovery in the US spot market are also noteworthy. In particular, the Coinbase Premium Index reached the highest level since October 2025, from negative levels in early February. It is stated in the report that the new purchasing interest from US investors coincides with the increase in purchasing volume experienced on March 4.

Selling Pressure Weakens

It is revealed by several different indicators that the selling pressure in the market has decreased. It has been shared that traders’ unrealized losses are at the highest level since July 2022. Historically, this condition reduces investors’ motivation to realize losses and sell. Market conditions cause the current sales pressure to decrease even if new demand does not arise.

The sales pace of long-term investors has slowed down significantly. Over the last four months, 30-day sales volume has decreased from 904,000 BTC in November 2025 to approximately 276,000 BTC today. In other words, sales of long-term investors have decreased by 69 percent. It is stated that the decrease in the supply entering the market from long-term investors and the improvement in the contraction in demand brought about the increase in the price of Bitcoin. However, it is emphasized that there is not yet enough data to talk about a new and strong demand wave.

Where Does the Market Stand According to the Data?

Another important indicator revealed by the report is CryptoQuant’s “Bitcoin Bull Score” index. This index offers a composite representation of multiple metrics on the chain and currently stands at 10 points out of 100. Historically, these scores are associated with bear market conditions, not bull market conditions.

The analysis includes the assessment that current data indicates an easing rally within the ongoing bear market. It is stated that this rise, caused by sales pressure and moderate improvement in demand, should not be confused with a permanent upward trend. It is emphasized that a stronger and clearer demand increase is essential for a sustainable rise.

Although Bitcoin reaching $73,000 is considered a significant advance, on-chain data indicates that this level is not the same as the beginning of a new bull market.

Disclaimer: The information contained in this content is not investment advice. Please note that cryptocurrencies involve high volatility and therefore risk. It is recommended that you make your investment decisions based on your own research and risk assessments. You can review our Trust Center page for detailed information.

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