Bitcoin (BTC) Selling Pressure Has Dropped Sharply, Suggesting a Period of Consolidation

Bitcoin’s selling pressure has fallen sharply, suggesting a period of consolidation through April and May.

Bitcoin (BTC) selling pressure has fallen sharply, setting the stage for the next move as the cryptocurrency enters a period of consolidation through April and May, according to analysis by CryptoQuant.

On a Apr. 1 post on X, Axel Adler Jr., an analyst at the on-chain analytics firm, noted that daily selling volume on major exchanges has dropped from 81,000 Bitcoin (BTC) to 29,000 BTC. Following this decline, the asset may enter a supply shortage phase with less sellers and consistent demand, setting the stage for the next Bitcoin price movement.

"The average selling pressure on top exchanges has dropped from 81K to 29K BTC per day," said Adler. "Welcome to the zone of asymmetric demand. The market has successfully absorbed waves of profit-taking following the break above $100K. Sellers have dried up, and buyers seem comfortable with pivoting at a lower price over time."

A shift in the futures trading market mirrors this trend. In a separate post, Adler noted that short positions surged as bearish traders tried to profit following Bitcoin’s February all-time high. However, this pressure is now weakening, and trading behavior is changing.

"The behavior in the futures market is also shifting. We're seeing less short positions being liquidated as the bears get tired and the market enters a new phase," he added.

Through exchange traded funds, institutional investors are now playing a bigger role in Bitcoin’s price trajectory than the retail market. As a result, the asset is more sensitive to macroeconomic events such as Federal Reserve policy shifts and inflation reports.

"The price action is becoming increasingly dependent on macro events, especially with the decreasing role of the retail market and the rising sensitivity to FED and inflation news."

Meanwhile, Binance’s dominance in spot trading could also signal a bullish trend. Joao Wedson, another CryptoQuant Analyst, pointed out that Binance's trading volume is now eight times higher than that of Coinbase, and that past patterns have showed that Bitcoin often experiences a price surge when Binance leads in volume.

"This indicator is turning positive again, meaning Binance's volume is consistently outpacing other exchanges," said Wedson. "The last time this happened was in January 2024, when Bitcoin was trading at around $42,000 and later surged to $52,000 after Binance's volume began to dominate."

Not all indicators, though, point to immediate gains. According to a 10x Research analysis, newly imposed tariffs and rising inflation could affect risk assets like Bitcoin.

Now at 5%, 10x Research analysts believe inflation expectations could slow down institutional inflow. They also noted that multiple risk-off catalysts are likely to pressure equities this week, which could spill over into the cryptocurrency market.

"We expect BTC to move lower and potentially test the $80K level," said the analysts. "With the upcoming CPI and PPI reports, we may see further weakness in the market."

As of press time, Bitcoin is trading at $83,530, with a seven-day range between $81,488 and $88,240. Although short-term risks are mounting, declining selling pressure and point to a stabilizing market, potentially setting the stage for the next move.