Demand for Bitcoin weakened further as its value fell to $72,000 in the early hours of May 28.
While the Bollinger Bands suggested BTC was trading near undervalued territory, broader data remained bearish. Sales accelerated as geopolitical tensions in West Asia resurfaced.
Why is Bitcoin Demand Falling?
Demand weakened in both the spot and perpetual markets, increasing pressure on Bitcoin’s short-term prospects.
The most obvious weakness was in the spot market, where contraction increased while demand for futures remained vulnerable. Demand growth turned negative, with an average contraction of 139,000 Bitcoin.
That shift left Bitcoin [BTC] exposed to greater losses if new demand did not return.
Liquidation data reinforced the bearish structure. At the time of writing, $347.3 million in long positions were liquidated, compared to $15.57 million in short positions.
That meant that long liquidations exceeded short losses by almost 22 times over the same period. The imbalance showed that short traders were keeping momentum firmly in check.
Why are salespeople taking control?
Bitcoin’s buy/sell pressure delta turned negative on the four-hour chart, reaching -18.02. This move confirmed that seller dominance was strengthened in shorter time frames.
Founder and CEO of Alphractal, 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 occurs, the downward trend could continue until late August or September.
Additionally, the Accumulation/Distribution indicator showed that distribution had strengthened over the past day.
At the same time, total Bitcoin volume dropped to 12.66 million. Continued distribution could cause further downward pressure.
$1.66 billion ends up on the stock exchanges because spot purchases fall short
Tracking Bitcoin’s movements in and out of exchanges provides further context on the directional pressure building on the asset. Bitcoin Exchange Reserves increased from $238.14 billion to $239.8 billion between May 15 and the time of writing.
The increase added about $1.66 billion worth of Bitcoin to the exchanges.
Rising foreign exchange reserves generally suggested that holders were moving assets to trading venues, increasing potential selling pressure.
Still, spot buyers continued to buy Bitcoin during the decline. Over the past three days, Spot buyers have purchased approximately $298.7 million worth of Bitcoin.
That purchasing activity itself remained constructive. However, the price remained too weak to offset broader selling pressure.
As bearish momentum strengthened, traders remained focused on whether demand could stabilize before another wave of liquidations emerged.
Final summary
- Bitcoin demand turned negative when the spot market contraction averaged 139,000 BTC.
- Long liquidations reached $347.3 million – meaning bullish traders absorbed most of the losses during the latest decline.