Analysis: Bitcoin MVRV Z-Score Drops to -59, 30-Day Net Buy Demand Turns Negative

BlockBeats News, June 3rd. According to analyst Adler's latest article, the Bitcoin Impulse indicator reflecting Bitcoin's price momentum has dropped to -59, indicating a rapid shift to negative market momentum. At the same time, the 30-day Net Taker Volume Position Change indicator, measuring the change in active buying and selling pressure, has dropped below the zero axis for the first time in nearly three months, indicating that the active buying pressure that drove the previous uptrend has been largely exhausted.

Momentum indicators typically lead changes in fund flows. Currently, both the fast and slow momentum indicators are in deep negative territory, with the fast momentum approaching -90 and the slow momentum quickly dropping to -59 after falling below the zero axis at the end of May. On the other hand, while the 30-day active buying demand indicator has just turned negative, it has not yet entered the "bearish territory."

Adler believes that the market is currently transitioning from a "buyer-dominated" phase to a "seller-dominated" phase and is overall in a risk-off state. If active buying demand continues to decline further and enters bearish territory, while momentum remains negative, it will further confirm the market's bearish trend. Conversely, if active buying returns above the zero axis, it may provide a rebound opportunity for the market.