Bitcoin is holding above $108,000, but a closer look at the data suggests that the current price may be on shaky ground. While the asset has posted modest gains recently, several key on-chain metrics are flashing red. Rising miner profits, weakening demand, and increased exchange inflows all point to a possible short-term correction.

Here’s a breakdown of the data putting Bitcoin’s price under pressure.

Bitcoin’s Valuation Outpaces Activity

At the time of writing, Bitcoin’s market cap was growing faster than its network activity. This is shown clearly by the NVT Ratio, which jumped by more than 84% to hit 55.17. A high NVT Ratio usually signals overvaluation, as it means fewer real transactions are supporting the price.

In parallel, the Puell Multiple—a tool used to track miner revenue relative to historical norms—spiked to 1.26, a 25.73% increase. This indicates that miners are earning significantly more than usual, which historically has been a signal that selling pressure may rise soon.

Demand Weakens as Supply Pressure Builds

Another concerning sign is the drop in Apparent Demand, which measures how much new capital is entering the market to absorb coins sold by miners and long-term holders. This figure has turned negative once again, suggesting that recent buying momentum is fading. If this continues, miners and older wallets may start distributing coins into a market unable to absorb them efficiently—often a precursor to a price drop.

Most Holders Are in Profit—But That Could Be a Problem

According to the latest UTXO data, more than 98.82% of Bitcoin holders are in profit. While this might sound bullish, it creates a fragile support structure. When most market participants are sitting on gains, there’s less incentive to buy dips or defend key price levels. In past cycles, similar profit-heavy distributions preceded local tops, as traders rushed to secure profits when momentum stalled.

First Net Inflow in Weeks May Signal Shift in Sentiment

Bitcoin recently recorded a $57.5 million net inflow to exchanges—the first meaningful inflow after a long period of outflows. In general, coins moving to exchanges is a bearish signal, as it suggests investors may be preparing to sell.

If this trend of inflows continues, it could lead to a shift in sentiment, with accumulation giving way to distribution. Combined with weakening demand, this could put more pressure on Bitcoin’s ability to hold its current range.

Declining Active Address Growth a Red Flag

Bitcoin’s active address count—a key indicator of user engagement—continues to lag behind its price. The DAA divergence (daily active addresses divergence) chart remains deep in the red. This metric measures whether address activity is rising in tandem with price, and when it doesn’t, it often suggests a lack of real user support behind the rally.

This divergence implies that much of the price strength could be speculative and not backed by organic usage or adoption, increasing the likelihood of a reversal.

Can Bitcoin Hold $108K Without Strong Demand?

While Bitcoin’s price remains steady on the surface, underlying signals paint a more fragile picture. The combination of overvaluation, weakening demand, and potential miner selling sets the stage for possible downside volatility.

If Bitcoin is to sustain or grow from here, it will likely need a resurgence in real demand—such as increased user activity, fresh capital inflows, or reduced exchange deposits. Until then, caution remains warranted.

Conclusion

Bitcoin’s current stability near $108,000 might not last if on-chain trends continue in their current direction. Rising miner profits, increased exchange inflows, and a lack of new user activity are key indicators of a weakening foundation.

While no major correction has taken place yet, these signs suggest that Bitcoin could be nearing a turning point. Traders and long-term holders alike may want to monitor demand metrics closely before placing new bets on further gains.