Analysis: Bitcoin's dip buying is absorbing some selling pressure, but it is still insufficient to reverse the downward trend

BlockBeats News, May 31st, the selling pressure of Bitcoin spot ETF continues to intensify. Following a net outflow of $12.6 billion last week, the Bitcoin spot ETF recorded another $14.2 billion net outflow this week, causing BTC to briefly drop to $72,500. However, on-chain and market data show that some funds have started buying the dip around $70,000. The spot market buying pressure is absorbing some of the selling pressure, providing support for the Bitcoin price, but the buying volume is still not enough to reverse the current downtrend.

Meanwhile, derivative market data shows that traders added approximately $300 million in long leveraged positions in the $73,000 to $74,000 range, indicating that some investors are betting on a price rebound. Furthermore, the order book depth ratio has turned positive, indicating that the market sees BTC below $75,000 as attractive.

In order to push Bitcoin back into an uptrend, the market still needs new catalysts, including progress in the US-Iran peace agreement, a reversal of funds from the Bitcoin spot ETF to net inflows, a drop in oil prices, and bullish news related to the US strategic Bitcoin reserve.