Bitcoin's demand momentum hits historic lows as over 800K BTC exits short-term holders' wallets, signaling deep market exhaustion.
Despite Bitcoin trading above $100K, fresh demand collapses with spot momentum showing the worst negative trend in five years.
A potential reversal looms as BTC nears the $97K level, flagged by analysts as a prime accumulation zone before the next rally.
Bitcoin is showing signs of a final correction as short-term holders offload massive volumes. Since May 27, they have shed over 800,000 BTC. According to CryptoQuant, spot demand momentum is now at its most negative reading ever recorded — surpassing previous sell-off periods.
Source: Cointelegraph(X)
This trend is reflected in the demand momentum. It tracks market sentiment from September 2020 to May 2025. Besides, it highlights phases of aggressive buying and intense selling. Most notably, 2021 saw strong demand pushes that took BTC past $60,000. However, momentum turned negative shortly after, driving BTC down to the $30,000–$50,000 zone.
Spot Demand Weakens Despite Elevated Prices
Currently, Bitcoin trades above $100,000. However, this high price hides the underlying weakness in fresh demand. The momentum indicator shows extreme negative values. This situation is worse than any demand drought seen in the past five years. Hence, it signals potential exhaustion among new buyers.
Moreover, the 30-day moving average of demand momentum shows a downward trend. This average smooths out short-term noise, giving a better sense of the long-term outlook. Consequently, it confirms the current bearish sentiment, even as prices remain elevated.
Strategic Buy Zone Emerges Near $97K
Popular analyst Astronomer suggests BTC is nearing a strong buy zone around $97,000. He points out that this level aligns with expected weekly lows. Besides, previous weekend lows have often been retested. Hence, a final drop could sweep these levels before a reversal begins.
Source: Astronomer
Additionally, sentiment and geopolitical factors appear to support this view. Astronomer believes the end of June will be a turnaround point. If the $95K–$97K area holds, sidelined buyers may reenter aggressively. Moreover, those already positioned may choose to scale in deeper.
This correction may offer a rare opportunity for strategic accumulation. Many investors missed the initial 2024 rally. However, this potential dip could reset the board before BTC attempts higher levels again.
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