Bitcoin Price Rebound May Be Short-Lived Due to Weakening Demand

A recent on-chain analysis suggests that Bitcoin may experience a short-term pullback after its price rebound. Analyst MAC_D from CryptoQuant highlights several metrics indicating a possible retracement, including declining spot demand strength and intense profit-taking.

The analyst points out that the Realized Profit and Loss metric reached its highest level on April 14th, suggesting that investors are taking profits. This is further supported by the large amounts of Bitcoin entering exchanges, which could indicate incoming sell pressure.

Additionally, the futures market is opposing the recent bullish momentum, with Open Interest diverging from recent highs. This suggests that traders are not aggressively leveraging, which could weaken the rally's sustainability.