[DigitalToday reporter Yoonseo Lee (이윤서)] Bitcoin demand is weakening quickly, increasing the chances of a prolonged sideways move or additional declines below $80,000.

Cointelegraph reported on May 21 that Bitcoin recently hit resistance above $80,000. Spot demand and exchange-traded fund (ETF) flows slowed at the same time.

The key point is that buying strength has weakened. Caprioli Investment's Bitcoin nominal demand indicator fell to its lowest level since mid-January. The indicator had stayed negative since Dec. 22, 2025, then improved slightly in late February, but it plunged again on Thursday to -3,138 BTC. This was seen as a result of investors strengthening risk-off preferences amid geopolitical factors and macroeconomic uncertainty.

On-chain data firms also pointed to weakening stamina in the spot market. CryptoQuant said in a weekly report that overall demand for Bitcoin has turned to a decline. Glassnode said the spot cumulative volume delta across exchanges has remained negative in recent weeks. It assessed that spot buying did not clearly rebound even as prices slid to the high $70,000 range.

Bitcoin spot ETF flows were also cited as a burden. The 30-day change in ETF holdings fell to its lowest level in about 3 months, and flows shifted to net selling. Glassnode said spot demand near the current price high appears less aggressive than before. CryptoQuant judged that when both the spot market and ETF flows worsen, it has more often coincided with a resumption of price weakness than with stable sideways trading.

Price structure also suggests it is still too early to be confident about a trend reversal. Bitcoin rebounded 38 percent from a macro low of $60,000, rising at one point to $82,800, above the market mean price of $78,300. This indicator is a price model that tracks the average purchase price of actively traded Bitcoin and is used as a baseline to distinguish bear and bull markets.

Glassnode, however, assessed that regaining that price level may be a necessary condition for a structural shift but does not in itself mean a transition to a bull market. It said a clear move into a bullish phase would require meaningful demand recovery and additional accumulation above that level.

A similar range has persisted for extended periods in the past. From March to October 2021, Bitcoin moved sideways near this average line for more than 6 months before resuming an uptrend. With the current market also unlikely to have changed direction on a short-term rebound alone, more weight is being given to the view that the range could persist for some time.

Other analysts also cite aggressive selling in the futures market, a slowdown in retail investor activity and weakening technical structure as additional risk factors. There was also a warning that if this trend continues, Bitcoin could slide to $65,000 within the next few weeks. Ultimately, the market's next direction depends on whether it regains the key support zone around $78,300 and whether spot demand and ETF funds begin flowing in again.