Bitcoin has steadied near $73,000 after a three-day slide, but pressure has not cleared. Data cited by crypto.news showed BTC trading around $73,200 at the time of writing after briefly dropping toward $72,600 on May 28. The move wiped out more than 10% from the May high near $81,000. Geopolitical stress tied to Iran, heavy U.S. spot ETF outflows, and leveraged liquidations all hit the market at the same time.
Sentiment improved modestly after reports said U.S. and Iranian negotiators were working on a memorandum of understanding that could extend a ceasefire by 60 days and reopen shipping routes through the Strait of Hormuz. That development helped calm oil markets. It also eased some of the panic selling that had weighed on crypto through the week.
ETF redemptions and on-chain transfers add to supply concerns
U.S. spot Bitcoin ETFs posted one of their largest withdrawal streaks of the year. On May 27 alone, more than $733 million left the products, with BlackRock’s IBIT reportedly making up over $500 million of that total. When those products face redemptions, issuers may have to sell the underlying Bitcoin, which adds direct spot supply at a time when demand is already weak.
Another point of concern came from on-chain tracking. Observers flagged a transfer of more than $30 million in Bitcoin from Michael Saylor’s Strategy to Coinbase. The company has not announced any plan to sell, but the move was enough to fuel speculation on social media about whether the largest corporate Bitcoin holder could be reducing exposure. It also revived questions around Strategy’s long-stated commitment to keep accumulating and holding BTC.
Hotter inflation data clouds the macro backdrop
Macro conditions have also turned less supportive for risk assets. Recent U.S. CPI and PPI readings came in above expectations, reinforcing concerns that inflation remains well above the Federal Reserve’s target. Futures markets have sharply cut expectations for rate cuts this year, Treasury yields remain elevated, and the U.S. dollar has strengthened against major currencies.
Analysts at JPMorgan said Bitcoin and gold have both lost momentum as macro hedges. In the bank’s view, easing Middle East tensions and softer devaluation concerns have triggered outflows from what it called “devaluation trades.��� Over the past two weeks, ETF products tied to both assets have seen notable withdrawals, while institutional participation in CME futures has weakened.
Rounded-top pattern keeps focus on $72,500 support
The technical picture has deteriorated after repeated failures near $80,000. Bitcoin has fallen below its 50-day simple moving average and remains under daily Supertrend resistance near $79,000. On the daily chart, a rounded-top structure has taken shape. Since the rejection near $81,000 earlier in the month, price has kept posting lower highs, a pattern that looks more like distribution than consolidation.
Momentum indicators also lean bearish. The daily MACD has completed a bearish crossover, with the signal line above the MACD line and histogram bars still expanding in negative territory. That kind of setup is often seen during extended corrections. The weekly chart is not offering much support either: Bitcoin has slipped back below the key $73,000 area that previously acted as a breakout level. A weekly close under that zone would raise the probability of a move toward the February lows in the mid-$60,000 range.
On higher timeframes, Aroon Up has dropped to about 7.14%, while Aroon Down stands near 78.57%, showing that downside momentum is dominant. Weekly RSI remains below its signal line near 42, which suggests buyers have not regained control.
Liquidation clusters sit below price and above resistance
Derivatives data adds another layer of risk. CoinGlass liquidation data shows sizable leverage clusters around $72,000 and $71,500, with a particularly dense liquidity pocket near $72,200. If Bitcoin loses the $72,500 support area, forced liquidations could push price lower into those zones.
At the same time, the heatmap shows a concentration of short liquidations between $74,500 and $76,000. Analyst Lennaert Snyder said Bitcoin could still see a temporary relief move even while the broader outlook stays bearish. He identified $74,500, near the previous day’s high, as the next likely liquidity target. In his view, a rebound into the $74,500 to $75,600 range could sweep buy-side liquidity before sellers try to force another leg lower, while the previous week’s high near $78,200 stands out as a more attractive area for bearish positioning.
Analysts at Crypto World also warned that Bitcoin is nearing a critical support zone around $72,000, which they described as the last major support before a possible drop toward earlier year-to-date lows. Looking at the four-hour chart, they said Bitcoin is still printing lower highs and lower lows, a structure associated with sustained downside momentum. Their view is that price may fall toward $71,000 before any meaningful bounce develops.
To weaken the current bearish thesis, Bitcoin would need to reclaim resistance at $74,500, $75,000, and $78,000. A move back above the daily Supertrend near $79,000 would do more to repair the recent breakdown structure. If $72,500 fails, the next support zones highlighted in the report sit near $72,200, $71,500, and $68,000.