Bitcoin (BTC) Consolidation Despite Trading Volume Decline Signals Whale Buying the Dip

Bitcoin (BTC) opened trading at the $84,000 level on Sunday, March 23, extending its consolidation phase

Bitcoin (BTC) price opened trading at the $84,000 level on Sunday, March 23, extending its consolidation phase for three days. As the chart below shows, Bitcoin trading volumes have declined from 22,900 BTC traded on Binance on March 20 to just 5,420 BTC at the close of Saturday, March 22.

As an asset’s price consolidates at a critical support level despite a persistent decline in trading volume, it often signals bullish undertones. This suggests that large Bitcoin investors, also known as whales, have been executing significant transactions, counteracting the impact of retail traders’ inactivity.

Moreover, high-frequency traders typically prefer volatile conditions, and Bitcoin’s flat price action within a narrow 1% range does not offer wide profit margins.

Thus, this low-volatility market environment allows whales to sidestep OTC fees and execute large-volume buys on BTC spot markets without causing significant price fluctuations. These factors explain why BTC has held steady around $84,000 despite a 75% decline in Bitcoin trading volumes over the past few days.

Bitcoin derivatives market data from Coinglass reveals that open interest has dipped 1.77% to $51.98 billion, while options open interest has also declined slightly by 0.54% to $33.51 billion. Across all major metrics, Coinglass data highlights a prevailing bearish sentiment, with a significant 79.28% drop in options volume, indicating reduced speculative activity.

Despite this, the long-short ratio remains near neutral at 0.9589 for the past 24 hours, with Binance and OKX showing a higher tilt toward long positions. This suggests that while open interest has declined, existing traders are still positioning for potential upward movement.

Liquidations data further supports the bottom formation narrative. Over the last 12 hours, $4.63 million in liquidations occurred, with shorts accounting for $806.59K—significantly more than long liquidations. This indicates that downward momentum is being absorbed by bullish traders.

The current environment suggests that BTC price may be nearing a local bottom after three days in retreat. A decisive move above $85,000 would validate the bullish thesis, while failure to hold $83,500 could invite further downside exploration. Traders should watch derivatives volume recovery and long-short ratio fluctuations for confirmation of the next major move.

Bitcoin Technical Analysis Today: BTC to Remain Range Bound Within $88,000 – $83,265

Ranging between $83,265 and $88,000, Bitcoin price continues to be subject to conflicting signals from spot and derivatives markets, suggesting a prolonged consolidation phase. However, sustained consolidation could also indicate a period of market indecision.

As the chart below shows, BTC needs to break out decisively from the $88,000 to $83,900 range before a clear directional trend emerges. The Fibonacci retracement levels highlight immediate support at $83,265, whereas resistance is pending at $86,363.22. A breach above this level could see BTC retest the $88,866.76 resistance, signaling a bullish continuation.

However, the lower histogram bars indicate waning trading volume, suggesting weakening momentum and raising the risk of a bearish breakdown. If sellers take control, Bitcoin could drop below $83,265, exposing the next key support at $78,258.52. The red-shaded liquidity zones above $91,000 highlight potential supply zones where selling pressure could intensify.

Until a breakout occurs, Bitcoin’s sideways movement suggests traders remain cautious, awaiting confirmation of a trend shift.