Summary: Bitcoin Hovers Below $120K as On-Chain Indicators Point to Slowing Demand

The crypto market is buzzing with a new narrative as Bitcoin, after briefly soaring past $123,000 this month, finds itself in a state of muted ascent, hovering stubbornly below the $120,000 threshold. Despite a modest 2% weekly gain, on-chain analytics are painting a cautious picture, suggesting that the fervent demand that fueled its recent rally might be losing steam. Recent analysis from CryptoQuant reveals a noticeable decline in buying appetite for Bitcoin, particularly in the historically influential US and South Korean markets. The Coinbase Premium Index, which measures US investor activity, remains flat despite Bitcoin's recent record highs in July. This suggests American investors aren't eagerly accumulating at current price levels, possibly indicating strategic profit-taking or a cautious stance in anticipation of a market correction. Similarly, the Korea Premium Index shows a drop in demand from South Korean retail investors, implying they might be holding out for a better entry point. Further supporting this cautious outlook, Bitcoin has experienced its largest net inflow to exchanges since July 2024. Historically, such significant inflows near all-time highs often precede price corrections, as large holders or institutions might be preparing to sell and lock in profits. This potential redistribution of capital from Bitcoin could, however, spark renewed interest and increased volatility across the broader altcoin market, presenting new opportunities for astute traders.