Demand for bitcoin declines despite sharp rise in price

Since the beginning of this week, the price of bitcoin has surged 10.73%. However, CryptoQuant suggests that this growth is unstable because it has not been accompanied by an increase in demand for the leading cryptocurrency.

Despite the strong growth in prices over the past three days, the general trend remains bearish. 

The bitcoin demand breadth indicator, which tracks the activity of new investors versus existing holders, has declined. Historical trends show that sustained price growth requires strong buying momentum from existing holders and increasing demand from new traders.

The decrease in the share of new bitcoin holders indicates their hesitation to purchase the digital currency amid the downward trend in its prices. This circumstance jeopardizes the stability of the bitcoin rate.

Negative demand dynamics indicate declining interest in bitcoin. This has caused concern among existing holders and investors who want to maximize profits by further increase in prices.