Bitcoin Indices Paint Fragile Market Position – How Close Is Relief?

Over the last month, Bitcoin prices have dipped by 3.45% net, as the leading cryptocurrency struggles to sustain its April momentum. During this time, Bitcoin has faced multiple rejections at the $82,000 price zone, triggering a sustained downward trend since mid-May. In his latest market analysis, renowned expert Maartunn has provided insight into this decline, a fragile market structure shaped by multiple layers of sell-offs.  In an X post on May 29, Maartunn reports that Bitcoin’s price has now dropped by 11% over the last 14 days. However, in-depth market research shows that this price loss is merely a symptom of a concerning structural issue in the sector, marked by the concurrent exit of various market participants. One of these actors is the future traders who are taking aggressive selling positions. According to data from CryptoQuant, selling pressure in the derivatives market has reached its highest level since March, with net taker volume plunging to -$948 million. On average, sellers have exceeded buyers by roughly $40 million per hour, indicating a sustained pressure rather than a one-off event.

Meanwhile, US spot market participants appear to be leaning bearish. On-chain metrics reveal that Coinbase is trading at a 0.21% discount compared to Binance, reflecting a negative Coinbase Premium. This negative spread indicates that selling pressure is stronger among US-based investors, as Bitcoin is being offloaded more aggressively on Coinbase than on offshore exchanges. Finally, institutional investors are also adopting a more cautious stance marked by two consecutive weeks of outflows. Over this period, approximately $1 billion has been withdrawn from iShares Bitcoin Trust in the past week alone. This sustained reduction in institutional exposure signals a notable decline in demand, adding another layer of resistance to any near-term bullish breakout.

Positive Signs Exist, But Market Recovery Remains Historically Far Away

Amid the negative and concerning dominant market trends, Maartunn importantly notes early positive signals suggesting a potential market rebound. One of these signals is the Stablecoin Supply Ratio (SSR) indicator, which is rising, suggesting that stablecoin liquidity is increasing relative to Bitcoin’s market value. This condition often precedes renewed buying power. Additionally, net taker volume is nearing typical exhaustion levels, indicating that aggressive selling pressure may be nearing its limit. Such extreme sell-side conditions have often marked local bottoms, as “smart money” tends to step in during periods of capitulation to accumulate positions at discounted levels.  However, while a short-term relief rally remains possible, the case for a sustained long-term recovery appears less convincing at this stage. Historical data show that Bitcoin’s cycle lows have typically formed significantly later after each halving event, i.e., around 889 days in 2016, and 925 days in the 2020 cycle. In comparison, the current cycle is only about 768 days post-halving, suggesting that the market may still be within a broader corrective phase rather than approaching a definitive macro bottom.

Bitcoin Market Overview

At press time, Bitcoin is valued at $73,309, down 3.32% over the last week.