BTC rebound losing momentum, analyst warns

Bitcoin's rally is losing its upward momentum, according to an analysis by on-chain analyst XWIN Japan Research. In a contribution to CryptoQuant, the firm argued that while BTC rebounded sharply from its April low to briefly recover to $82,000, the rise was driven more by speculative demand in the futures market than by actual spot buying. "One of the most important signals is that BTC faced resistance near its 200-day moving average of around $82,400," the analysis stated. "This is similar to the pattern in March 2022, when BTC also saw a strong rebound, met resistance in the same range, and then reversed into a downtrend." The firm added that BTC demand has shrunk as buying pressure from futures weakened sharply following the liquidation of long positions above the $80,000 level. Simultaneously, growth in spot demand has slowed, with spot BTC ETFs recording consecutive net outflows after seeing large net inflows earlier this month. "If a correction continues, the $70,000 area is the key support line," XWIN Japan Research concluded.