Bitcoin has recently surged to nearly $73,000, marking its highest level in a month and reigniting attention across the cryptocurrency sector. According to a new report from CryptoQuant, the driving force behind this rally is a marked improvement in the balance of supply and demand on the blockchain. However, the analysis urges caution, emphasizing that these positive signals should not yet be mistaken for the start of a prolonged bull market.
Signs of Recovery in Demand
CryptoQuant’s “Bitcoin Apparent Demand” metric is designed to measure the equilibrium between fresh supply entering the market and the appetite of long-term buyers. At the start of 2026, this indicator revealed a sizable gap, pointing to a shortfall of around 136,000 BTC in spot market demand. More recent data, however, shows the gap has narrowed significantly to just 25,000 BTC, suggesting a notable reduction in demand weakness. Since early February, this trend has helped underpin Bitcoin’s price floor. Nevertheless, the demand indicator remains in negative territory, dampening hopes that this rebound represents a definitive or lasting shift. Although the signs of recovery are encouraging, the lack of a sustained move into positive territory limits confidence in the permanence of the rally.
In the United States, the spot market is also displaying signs of renewed strength. The Coinbase Premium Index, which tracks pricing discrepancies between American and international exchanges, has reached its highest point since February, rebounding from negative levels seen at the start of the month. The uptick in this index aligns with a spike in buying volume among U.S. participants on March 4, highlighting a resurgence of American interest in the world’s biggest cryptocurrency.
Pressure to Sell Eases
Several key indicators now point to a decline in selling pressure throughout the market. For one, unrealized losses among traders have reached their highest level since July 2022. Historically, this scenario tends to reduce the motivation for holders to cut their losses and sell, as potential sellers are increasingly wary of realizing those losses in a rising market. As a result, even without substantial new demand, the overall pressure to sell is easing across the board.
Long-term holders have also dramatically slowed the pace of their selling. Over the past four months, the 30-day volume of coins sold by these investors plummeted from 904,000 BTC in November 2025 to approximately 276,000 BTC today. This means sales from this cohort have dropped by 69%. Reports highlight that both the decreased supply from steadfast holders and the improvement in underlying demand have jointly supported Bitcoin’s price growth. Yet, experts stress that the available data is not enough to confirm the arrival of a fresh and robust wave of buyers just yet.
What Do the Data Say About Current Market Conditions?
Another key signal highlighted in the report is CryptoQuant’s “Bitcoin Bull Score”—a composite index drawing on a range of on-chain metrics. Currently, this score sits at 10 out of 100. Historically, such low readings are more closely associated with bear market environments rather than bullish cycles, providing a sobering counterpoint to recent price action.
The analysis describes the current rally as a relief movement within an ongoing bear market, rather than the start of a sustained upward trend. Moderate improvements in both selling pressure and demand have contributed to recent gains, but analysts warn against confusing temporary upticks with lasting momentum. For Bitcoin to maintain a more durable rally, a stronger and clearer increase in demand will be necessary.
While reaching the $73,000 mark represents a significant milestone for Bitcoin, on-chain data underlines that this peak alone does not necessarily herald the beginning of a new bull market. The market’s underlying foundation, at least as captured by current blockchain metrics, remains unsupportive of a full-fledged reversal.
