CryptoQuant analyst Darkfost said on Aug. 25 that Bitcoin’s total demand has continued to rise over the past 30 days and now stands at about 170,000 BTC, with spot and futures demand increasing at the same time. In his view, the market has entered a demand-driven advancing phase while still absorbing profit-taking pressure. He argued that even though short-term overbought signals are already pronounced, traders should avoid trying to time an exact reversal. Darkfost said historical patterns show that periods when spot and futures demand expand together have often marked Bitcoin’s strongest upside impulses. He added that the key variable to watch is not whether price has climbed too far, but whether demand is still absorbing selling pressure effectively. According to his assessment, the current move would be more at risk of ending only if demand starts to fade and profit-taking begins to outweigh buying support.
CryptoQuant analyst Darkfost said Aug. 25 that Bitcoin’s total demand has kept climbing over the past 30 days and is now around 170,000 BTC, with spot and futures demand rising in tandem.
He said short-term overbought signals have already become quite clear, but argued that this is not the time to try to pinpoint a perfect market top. In his reading, Bitcoin appears to be in a demand-led advancing wave while the market continues to absorb profit-taking pressure.
Darkfost said historical patterns show that phases in which spot and futures demand grow at the same time have often been Bitcoin’s strongest upside-driving periods. As long as that demand remains in place and continues to take in short-term profit-taking, upward momentum may continue even if the market stays in overbought territory.
He added that the main variable to track right now is not whether Bitcoin’s price is too high, but whether demand is still absorbing selling pressure effectively. Only when demand begins to weaken and profit-taking starts to outweigh buying support could the current advancing wave come to an end. Before that, he said, any contrarian trade based purely on overbought signals may be running against strong demand momentum.
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