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- Bitcoin’s rally above $73K may be a short-term relief bounce, not a new bull market.
- On-chain data shows demand improving and selling pressure easing.
- Key resistance levels to watch are $79K and $90K.
Bitcoin’s recent rebound above $73,000 briefly revived optimism across the crypto market. After weeks of pressure, the move suggested that selling momentum might be fading and that demand could be returning. However, new on-chain data indicates the rally may not signal the start of a new bullish cycle just yet.
According to analysts at CryptoQuant, the current market structure still reflects a broader bearish environment. While demand conditions have improved and selling pressure has eased, several fundamental indicators suggest the latest price move may be more of a temporary recovery than a long-term trend reversal.
On-Chain Data Shows Demand Is Improving
One of the key drivers behind Bitcoin’s recent rebound is a noticeable improvement in spot market demand. Earlier in 2026, Bitcoin experienced a sharp contraction in apparent demand, with roughly 136,000 BTC more leaving the market than entering it.
That imbalance has now narrowed significantly to around 25,000 BTC. This shift indicates that the pace of selling has slowed and market liquidity conditions have stabilized. Reduced supply pressure often allows prices to recover, even in weaker market cycles.
Another important signal comes from the Coinbase Bitcoin Premium — a metric that tracks the price difference between Coinbase and global exchanges. The indicator recently moved from strongly negative territory to its most positive level since October, suggesting renewed buying interest from U.S.-based investors.
Together, these signals point to improving market sentiment, but not necessarily a full trend reversal.
Selling Pressure From Traders and Long-Term Holders Declines
Beyond demand metrics, selling behavior across the market has also shifted. Traders currently hold unrealized losses comparable to levels seen during mid-2022 market conditions. Historically, when investors are already sitting on deep losses, they are less likely to sell additional holdings, which reduces immediate downside pressure.
Long-term holders appear to be slowing their distribution as well. Over the past several months, the pace at which long-term investors sold Bitcoin has dropped sharply—from roughly 904,000 BTC in late November to about 276,000 BTC today. That marks the lowest level of long-term holder selling since mid-2025.
This decline in supply entering the market has likely helped support Bitcoin’s recent recovery.
Key Resistance Levels Still Loom
Despite these improvements, analysts caution that the broader market remains in a bearish phase. CryptoQuant’s Bitcoin Bull Score Index currently sits at just 10 out of 100, indicating that most technical and fundamental conditions associated with strong bull markets have yet to appear.
If Bitcoin continues to climb, analysts see potential resistance near $79,000 and $90,000. These levels align with key on-chain price bands tied to trader realized costs, which often act as resistance zones during bearish market cycles.
Also Read: Trump-Backed Miner Stockpiles $433M in Bitcoin After Mining 766 BTC in 2026
Bitcoin’s recent bounce has offered some relief for investors after weeks of downward pressure. Improving demand metrics and declining selling activity suggest the market may be stabilizing.
However, on-chain indicators still point to a broader bearish backdrop. Until stronger fundamental signals emerge, the current rally may remain a temporary rebound rather than the start of a new bull run.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
