Market Rebound Continuation Under Scrutiny

Deep News
05/27

On May 27, attention was drawn to discussions heating up regarding "insufficient follow-through from spot buying" for Bitcoin after its phased rebound, shifting market focus back to on-chain and capital flow indicators for measuring demand strength. An analysis cited from CryptoQuant's 30-day apparent demand indicator noted that when this metric turns negative, it signifies that buyers are failing to effectively absorb new supply, making short-term prices more susceptible to selling pressure disturbances. In this context, it is considered that price action involves not just direction but also requires an assessment of the "quality of support" within key zones. Reports indicate that when demand indicators weaken while prices remain elevated, market sensitivity to external fluctuations increases, and any significant volume-driven decline could trigger faster risk repricing. Market data suggests that persistently weak demand often leads to diminished sustainability of rebounds, with capital tending to reduce positions near resistance levels or adopt shorter-term trading strategies. Analysts believe that observing whether trading volume and spot capital flows improve in tandem is a crucial condition for determining if a rebound can evolve into a sustained trend. Simultaneously, positioning structures in the derivatives market may amplify volatility, particularly near critical price levels, where adjustments in options and leveraged positions are more likely to cause short-term acceleration. Reports indicate that if spot buying demand does not return, the risk of price testing lower liquidity zones increases. It is suggested that the current phase is more suitable for combining observations of on-chain demand indicators, spot trading volume, and reactions at key support zones. If demand indicators recover accompanied by increased volume, focus will shift to whether the rebound possesses stronger sustainability; conversely, stricter control over drawdown risks becomes more necessary.

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