On May 29, market observers noted that the Bitcoin market has entered a more detailed phase of liquidity monitoring following a price pullback. Reports from May 28 indicate that after Bitcoin fell below $73,000, multiple on-chain distribution signals point to increasing selling pressure. The data shows the Coinbase Premium Index deviating to -1,083% from its three-month average, with the price spread reaching -$94.95 at one point. Meanwhile, Binance recorded an average net inflow of approximately 1,496 BTC over the past seven days, 528% higher than the three-month average. However, long-term holders still control about 84.3% of the circulating supply, and the 30-day average realized loss has decreased to $12.85 million. This suggests that short-term capital is reassessing the relationship between spot demand, derivatives positions, and the behavior of long-term holders.
From a structural perspective, analysts believe Bitcoin has not completely broken away from its support zone, but the rise in selling pressure indicators means any rebound would require stronger spot buying support. If exchange net inflows continue to expand, the market may first test lower liquidity levels. Conversely, if long-term holders remain steady, the pace of any further decline could be limited.
On-chain data and product innovations are sending mixed signals. On one hand, distribution metrics and exchange net inflows indicate the presence of short-term selling pressure. On the other hand, the rapid absorption of deposits by newly launched yield products suggests some holders are still seeking to enhance the efficiency of their asset allocation within a long-term strategy. Market participants believe this divergence could lead to prolonged consolidation around key price levels.
Subsequent focus should be on trading activity within the $72,000 to $75,000 range and whether spot trading volume recovers in tandem with price stabilization. Insufficient buying pressure could lead prices to seek thicker liquidity at lower levels, while effective support could shift market sentiment from defensive to recuperative. For a volatile digital asset like Bitcoin, relying on a single price signal can be misleading. A more prudent approach involves combining analysis of on-chain inflows, futures funding rates, and spot trading volume to gauge market rhythm.
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