Bitcoin (BTC) finds itself in a critical position, experiencing a decrease in demand despite a recent break above the $28,000 price level.
This prevailing bearish scenario provides no substantial backing for the asset’s current price movement to counteract further declines.
A recent analysis conducted by CryptoQuant shed light on the current situation, emphasizing that bitcoin’s initial upward momentum was fueled by a burgeoning market demand, which appears to have significantly diminished in recent times.
#Bitcoin Trading Volume Spot/Derivatives
— CryptoQuant.com (@cryptoquant_com) May 30, 2023
"…we can say that another price growth up to the 30k level happened due to the impact of futures market movements."
by @Crazzyblockk
Link👇https://t.co/vSFCswaaWN
According to data extracted from bitcoin’s trading volume on exchanges, the report observes that the price surge that commenced earlier this year was sustained by a notable rise in BTC trade volume across spot and derivatives exchanges.
Notably, BTC experienced a remarkable ascent from its starting price of $16,541 at the beginning of the year to a high of $26,386 in March, representing a notable 59% surge within three months. Data indicates that bitcoin’s trade volume witnessed substantial growth on both spot and futures exchanges.
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The increased demand during the rally served as a hedge against potential price corrections, but trade volume on spot exchanges experienced a significant decrease after BTC hit $26,000. However, volume on derivatives exchanges remained high, offering sufficient support for the asset to reach the milestone of $30,000 in April.
The CryptoQuant report stresses that demand on futures exchanges has also dropped, leaving bitcoin with a dearth of demand. This exposes the asset to further declines should the bears take control of the scene.
Bitcoin hits $28,000 for the first time in 20 days
This decline in demand has emerged amid bitcoin’s recent reclamation of the $28,000 level after 20 days. The month of May has proven to be challenging for BTC. The asset has engaged in an uphill battle to prevent further declines below the $25,800 threshold.
![](https://cnews24.ru/uploads/834/83475e4a8a58e7ed517a9b8212dfc7ced18cf1f9.png)
BTC started May at $29,233, but dropped to $25,811 as of May 12, reflecting an 11.7% decrease in less than two weeks. Subsequently, the asset recovered from lows below $26,000 but has struggled to maintain a position above $27,000.
After a notable gain of 4.51% on May 28, BTC successfully regained the $28,000 level, as reported by crypto.news. However, subsequent declines have led to its current value of $27,786 at the time of this report. Despite these recent fluctuations, the asset has managed to maintain a 3.4% increase over the past seven days.
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