Bitcoin, is it bottoming out below $80,000?

▲ USD, Bitcoin (BTC) ©

As Bitcoin (BTC) struggles to gain momentum below $80,000, sluggish spot demand and ETF outflows are fueling a broader bearish sentiment in the market. However, signs of renewed demand for long positions are emerging in the futures market, suggesting investors are in the process of exploring direction.

According to investment media outlet FXStreet on May 26 (local time), Glassnode analyzed in a recent report that Bitcoin is trading below $80,000 amid continuous selling pressure. Bitcoin fell from around $79,000 to $74,000 last week and is currently attempting to recover to the $77,000 level. During this process, price momentum sharply decreased by 21.7%, indicating a weakening of short-term upward momentum.

Spot market trading has also slowed. Spot trading volume decreased by 10% compared to the previous week, indicating reduced investor participation. Conversely, spot cumulative volume delta (CVD) rose by 77.2%, and perpetual futures CVD increased by 35.5%. The media interpreted this as aggressive selling pressure gradually easing, with the market structure slowly stabilizing. At the same time, Bitcoin's open interest decreased from $38 billion to $36 billion, suggesting that some excessive speculative positions have been cleared.

Interestingly, despite the market's bearishness, preference for long positions is resurfacing. Long position funding rates surged by 135.4%, and the actual funding payment size also increased from $783,000 to $1.8 million. This suggests that investors are willing to pay additional costs to maintain upward positions. However, institutional investment flows remain cautious. US Bitcoin spot ETF trading volume decreased by 22.9% to $9.24 billion, and net outflows last week amounted to $1.18 billion.

On-chain data also indicates a wait-and-see sentiment in the market. Daily active addresses and transfer volume decreased, indicating a slowdown in short-term investor activity. According to CryptoQuant data, Bitcoin's 'Apparent Demand' fell to its lowest level since December last year, near minus 147,000 BTC. CryptoQuant analyst Darkfost diagnosed, "The moment when demand sharply slows down and market sentiment becomes excessively pessimistic is precisely the most noteworthy moment."

The media emphasized that for a Bitcoin bull market to regain strength, a recovery in spot demand, not speculative demand in the futures market, is essential. While the futures market can lead a price rebound in the short term, a sustained rally requires spot buying pressure to support the market's foundation again.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*