A key gauge tracking selling pressure around bitcoin has moved into a high-risk zone, signaling that the institutional bid which powered recent rallies is fading.
US spot bitcoin ETFs have absorbed a net 4,500 BTC since January-a thin number compared to the pace set during last year's rally. After strong accumulation in March and April, May has flipped into distribution according to Swissblock.
The firm warns that ETF demand is no longer absorbing selling pressure from miners and long-term holders.
Bitcoin traded near $75,800 Tuesday, down 2.6% over the past month. ETH, XRP, and Solana were also lower.
An apparent demand gauge has slid to its weakest level since December. CryptoOnchain reports $1.74 billion in ETF withdrawals over the past two weeks.
Some analysts note a potential bullish golden cross forming on the moving averages, but the structural support from ETF buying is absent. The question now: is this a pause or a turn?