BTC
2025-02-16
Category: None

If Bitcoin breaks the demand floor, the directional bias would likely be downward. 
my demand floor it's a hypothetical or predicted price level where support holds to stop further downswing .
 If the price of Bitcoin falls below this established demand floor, it suggests that the forces of supply are overwhelming demand at that level which will create Downward Directional Bias,in general when demand floor on daily timeframe is broken it implies that  Higher Supply forces are holding the price captive. Breaking the demand floor implies that demand is insufficient to support the price, potentially leading to further price declines as more holders try to selloff  on risk sentiment .
 Bitcoin isn't  like other commodities, Bitcoin's production follows a predetermined schedule, unaffected by price fluctuations. This means that even if the price drops below a certain level, miners will continue to release new Bitcoin into the market until the next halving event, but some times the cost of mining comes into play..
Elasticity of Demand: The demand for Bitcoin can be modeled using a constant elasticity of demand (CES) function, which considers factors like liquid supply and a demand shifter . If demand decreases (A shifts inwards) or supply increases, the equilibrium price will fall.
It's important to note Bitcoin's price is complex and that a break of a demand floor does not guarantee a continued downtrend, because most breakout are fake.