Bitcoin Bottom, Still Far Off?..."$70,000 Before $90,000" Warning

▲ Bitcoin (BTC)/AI generated image

Amid warnings that Bitcoin (BTC)'s bottom has not yet been confirmed, stablecoin dominance and large institutional capital flows are simultaneously raising risk-off signals.

According to crypto news outlet Bitcoin.com on May 31 (local time), Bitcoin is trapped in a narrow price range and is under technical bearish pressure. Market participants are also watching a key zone that will determine whether the next move is a recovery or a further decline towards $70,000. According to the article, Tether burned $1.2 billion in 24 hours, a pattern presented as similar to the trend seen before Bitcoin fell from $90,000 to $60,000 in February 2026.

YouTuber Crypto Rover pointed out on X (formerly Twitter) that Tether's market cap decreased by $1.2 billion in 24 hours, explaining that token burning occurs when actual dollars leave the system. In a separate post, he stated that the stablecoin dominance, combining USDT.D and USDC.D, has risen back above the bull market support band of 10.5%, assessing it as a typical risk-off flow moving from Bitcoin to cash-like assets.

Prediction markets also leaned bearish. Polymarket data reflected an 85% chance that Bitcoin would touch $70,000 before reaching $90,000. Blackrock's IBIT shed $2.1 billion worth of Bitcoin from the market in the past 10 days, while Strive, conversely, bought 1,100 BTC in a single session, showing conflicting institutional judgment.

The technical structure has not yet shown a clear reversal. On the 1-hour chart, Bitcoin tested $73,100 and then made a higher low, but it was repeatedly blocked by resistance near $74,100 to $74,200. A close above $74,200 on an hourly basis would open the path to $75,000 and $76,000, but a drop below $73,500 would bring $73,100 and $72,400 back into focus as key zones.

On the 4-hour chart, Bitcoin sharply dropped from around $78,000 to near $72,400, and has since been consolidating between $73,000 and $74,500. The daily chart is even more concerning. Bitcoin has been forming lower highs and lower lows since its peak near $82,800, with 11 out of 15 moving averages signaling a sell. The 14-period Relative Strength Index (RSI) is presented as 37, the Moving Average Convergence Divergence (MACD) as -1,105, and the Momentum indicator as -3,843.

From a bullish perspective, the arguments are that Bitcoin is holding above $72,400 despite continuous selling pressure, some corporate buying remains, and a pattern of higher lows is forming on short-term charts. Conversely, from a bearish perspective, 11 out of 15 moving averages indicate a decline, Blackrock's $2.1 billion reduction in holdings, Tether's $1.2 billion burn, and Polymarket's 85% probability are simultaneously increasing the risk of retesting $70,000.

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