According to BlockBeats, on May 21st, CryptoQuant analysts stated that Bitcoin reversed course after hitting the 200-day moving average resistance level, and the current trend is highly similar to that of March 2022: at that time, Bitcoin rebounded by 43% before hitting the 200-day moving average and subsequently resuming its decline. In this round, after Bitcoin broke through $80,000, overall demand has turned to contraction—speculative demand in perpetual futures has reversed sharply, surface demand in the spot market has contracted at an even faster pace, and US spot ETFs have also turned into weekly net selling, with 30-day demand growth falling to its lowest level in nearly a month. These three demand indicators have reversed simultaneously, completely removing the foundation supporting the rebound in April and May.
The continued absence of demand from US investors has further exacerbated bearish sentiment. The Coinbase Bitcoin premium has remained negative throughout the rally and pullback, indicating that US institutional and retail buyers remain risk-averse. The bullish rating index has fallen from 40 to 20, entering extremely bearish territory, consistent with the deep bear market readings seen in February-March 2026 when Bitcoin fell to $60,000-$66,000. If the pullback continues, $70,000 will become the primary support level, a position that has historically acted as a key support/resistance boundary in bear markets.
