Bitcoin Bloodbath: Bearish Signals Intensify as Selling Volume Spikes

Market sentiment turns grim as Bitcoin’s latest on-chain metrics flash red. The bears aren’t just growling—they’re feasting.

Volume tells the story: A surge in sell-side activity suggests traders are bracing for deeper corrections. When liquidity moves like this, even the most diamond-handed HODLers start sweating.

Meanwhile, traditional finance pundits are already drafting their ’I told you so’ tweets—because nothing makes a boomer analyst happier than watching crypto winter from their zero-yield savings account.

Bitcoin Holds the Line As Bears Increase Pressure

Bitcoin is testing a critical support zone just above $105K, a level that could define the next phase of this cycle. After reaching an all-time high of $112K, BTC has cooled off, and now the market is on edge as global economic tensions flare. The ongoing tariff standoff between the United States and China is reshaping macro conditions, triggering volatility and defensive behavior across markets.

Despite these headwinds, bitcoin appears to be holding relatively well. Unlike equities and some risk-on assets, BTC and ETH continue to show resilience in the face of macroeconomic uncertainty. Many investors view Bitcoin as a hedge against systemic stress, and the current price action supports that thesis.

Still, pressure is building. Top analyst Axel Adler shared key insights revealing that bears have been putting on significant pressure over the past five days, with strong sell-side volume indicating increased short-term uncertainty. This trend suggests that while long-term holders remain confident, short-term traders are actively selling into strength, potentially capping any immediate breakout attempts.

If Bitcoin manages to hold current levels and absorb the selling pressure, it could trigger an impulsive MOVE higher, confirming the broader uptrend. However, a breakdown below support might invite deeper retracement and test market confidence. With volume spiking and global headlines dictating sentiment, the coming days could prove pivotal for Bitcoin’s short-term direction.

Price Action Details: BTC Testing Demand

The 4-hour chart shows Bitcoin pulling back to test the $105K–$106K support zone after failing to reclaim the $109K resistance level. Price action has weakened since the rejection near the $112K all-time high, with consecutive lower highs and lower lows forming in recent sessions. BTC is now trading below the 34-period EMA and the 50 and 100 SMAs, indicating short-term bearish momentum is gaining traction.

The support at $105K is crucial. It’s not only the base of the last consolidation zone but also sits just above the horizontal level at $103,600, which marked the breakout structure earlier in May. A breakdown below this range could trigger increased selling pressure and open the door for a retest of the 200 SMA near $102K.

Volume remains elevated, and recent candles show strong sell-side activity, aligning with CryptoQuant data pointing to growing bearish strength in net taker volume. However, bulls still have a chance to defend this zone and reset the trend. A successful bounce from here, followed by a reclaim of $109K, WOULD restore momentum and potentially signal the next leg higher. Until then, BTC remains range-bound and vulnerable to further downside in the short term.

Featured image from Dall-E, chart from TradingView