"Beware When Rising" Bitcoin Demand Declines…70K-Dollar Drop 'Warning'

Bitcoin faces a warning of potential decline to $71,300, according to recent market analysis. The cryptocurrency held steady near $76,500 but showed weakening on-chain demand and capital inflow trends.

According to blockchain media CryptoSlay, Bitcoin's realized market cap decreased for the first time in 28 days on Thursday, while spot Bitcoin ETFs recorded two consecutive days of net outflows. The price hovered around $76,458, just below Glassnode's 'true market average' of $76,700, a level that has historically limited downside pressure.

Glassnode noted the realized market cap had decreased on Thursday for the second consecutive day, indicating that coins were revalued at lower prices rather than capital flowing out. Institutional flows also weakened, with Pathside Investors reporting $450.4 million in net outflows from Bitcoin spot ETFs on May 15 and an additional $295.9 million on May 16. However, these figures do not confirm specific investor movements or directly link to price changes, as ETF flows can be handled through cash or physical settlement.

Market focus has shifted toward the next support level at approximately $71,300, which aligns with short-term holders' average purchase price. Below that, a stronger on-chain support zone is expected between $62,000 and $65,000, though this is not considered a guaranteed floor.

For a rebound to be confirmed, Glassnode suggests Bitcoin must close above $76,700 for two consecutive days while the realized market cap turns positive again. If it fails to do so, the next key level would shift to $71,300. Currently, Bitcoin remains in an undecided phase with price holding near critical levels but on-chain demand indicators pointing downward.