BlockBeats News, May 21st, CryptoQuant analysts stated that Bitcoin experienced a reversal after hitting the 200-day moving average resistance, and the current trend resembles the high in March 2022: back then, Bitcoin rebounded by 43% before hitting the 200-day moving average and then restarting the downtrend. After breaking through $80,000 this time, the overall demand has shifted to contraction—perpetual futures speculative demand sharply reversed, spot demand contracted at a faster rate, U.S. spot ETFs also turned to weekly net selling, and the 30-day demand growth dropped to a near one-month low. The three major demand indicators simultaneously reversed, completely eroding the foundation that supported the rebound in April-May.

Absence of demand from U.S. investors further intensified the bearish sentiment. The Coinbase Bitcoin premium remained negative throughout the entire rebound and pullback period, indicating that U.S. institutions and retail buyers are still in a risk-averse state. The bull market score has dropped from 40 to 20, entering an extremely bearish zone, consistent with the deep bear market readings when Bitcoin fell to $60,000-$66,000 in February-March 2026. If the pullback continues, $70,000 will become a key support level, a level that has historically served as a critical support/resistance boundary in bear markets.