Bitcoin demand weakened further as the asset dropped to $72,000 during the early hours of 28th of May.
While the Bollinger Bands suggested that $BTC traded near undervalued territory, broader data stayed bearish. Selling accelerated as geopolitical tensions in West Asia resurfaced.
Why is Bitcoin demand falling?
Demand weakened across both the Spot and Perpetual markets, adding pressure to Bitcoin’s near-term outlook.
The clearest weakness emerged in the Spot market, where contraction intensified while Futures demand stayed fragile. The demand growth rate turned negative, averaging a contraction of 139,000 Bitcoin.
That shift left Bitcoin [$BTC] exposed to deeper losses if fresh demand failed to return.
Liquidation data reinforced the bearish structure. At press time, $347.3 million in long positions were liquidated against $15.57 million in shorts.
That meant long liquidations exceeded short losses by nearly 22 times during the same period. The imbalance showed short traders remained firmly in control of momentum.
Why are sellers taking control?
Bitcoin’s Buy/Sell Pressure Delta flipped negative on the four-hour chart, printing a reading of -18.02. The move confirmed seller dominance strengthened across lower timeframes.
Alphractal’s Founder & CEO, Joao Wedson, warned,
If the Buy/Sell Pressure Delta turns negative again, Bitcoin could enter a new three to four-month downtrend.
If that scenario plays out, the downtrend could extend through to the end of August or into September.
On top of that, the Accumulation/Distribution indicator showed distribution strengthened during the past day.
At the same time, total Bitcoin volume fell to 12.66 million. Continued distribution could add further downside pressure.
$1.66 billion hits exchanges as spot buying falls short
Tracking Bitcoin’s movement in and out of exchanges offers further context on the directional pressure building against the asset. Bitcoin Exchange Reserves rose from $238.14 billion to $239.8 billion between the 15th of May and press time.
The increase added roughly $1.66 billion worth of Bitcoin onto exchanges.
Rising Exchange Reserves typically suggested holders moved assets onto trading platforms, increasing potential sell pressure.
Even so, Spot buyers continued buying Bitcoin during the decline. Over the past three days, Spot buyers purchased roughly $298.7 million worth of Bitcoin.
That buying activity stayed constructive in isolation. However, it remained too weak to offset broader selling pressure.
As bearish momentum strengthened, traders remained focused on whether demand could stabilize before another liquidation wave emerged.
Final Summary
- Bitcoin demand turned negative as the spot market contraction averaged 139,000 $BTC.
- Long liquidations reached $347.3 million – it means bullish traders absorbed most losses during the latest decline.