Bitcoin's onchain demand indicator turned negative again this week, reversing a brief August rebound, and the price slipped below $77,000. The move came as bonds and equities sold off across the board, pulling crypto down with them.
A familiar signal
The indicator, which tracks whether buyers are stepping in or stepping back, had briefly turned positive in August after a rough stretch. That recovery didn't last. It's now back in negative territory, a sign that demand for bitcoin at current levels is fading.
This isn't the first time the metric has flipped this year. It's been choppy, and the latest reversal suggests the market hasn't found a solid footing yet.
The broader sell-off
Bitcoin's drop wasn't isolated. Bonds and equities also fell, pointing to a broader risk-off mood. When traditional markets get shaky, crypto often follows, and that's what happened here. The timing isn't great for bulls who were hoping the August bounce would stick.
The price slipping below $77,000 is a psychological level for many traders. It's not a technical cliff, but it does reset expectations. The question now is whether the indicator stabilizes or keeps sliding.
What to watch
The next few sessions will show whether the onchain demand indicator flattens out or pushes further into negative territory. If the broader sell-off continues, bitcoin could face more pressure. If markets calm down, the metric might recover as quickly as it flipped.
For now, the data points one way: demand is weak, and the price is reflecting that.
