Bitcoin has struggled to break above $77,000 in the past week, making several attempts but failing to secure a sustained move past this key resistance. After reaching a brief peak of $79,500, BTC faced heavy selling from short-term holders. Since April 15, on-chain data shows that 150,000 BTC have been sent to exchanges, pointing to significant profit-taking pressure.
Short-term Holders Fuel Selling Pressure
According to crypto analyst Darkfost, as Bitcoin’s price rose over the last two weeks, investors who have held for less than 155 days accelerated their selling. In three consecutive trading sessions, 65,000, 54,600, and 39,000 BTC were transferred to exchanges. This wave of short-term selling is believed to have prevented Bitcoin from breaking through the critical $80,000 barrier.
These increased flows to exchanges highlight how short-term holders move quickly to secure gains. Analysts emphasize that this type of selling typically exerts downward pressure on prices, especially around major resistance zones.
Sharp Decline in Trading Volumes
Spot trading activity has also seen a notable drop. Bitcoin’s daily transaction volumes have fallen to levels seen during the market lull in September 2023. Over the past month, Binance lost $25 billion in volume, Gate.io saw a $13 billion reduction, and OKX recorded a drop of approximately $6 billion.
The contraction in trading volume is viewed as a sign of weakened investor confidence. Analyst Darkfost noted that this decline reflects a temporary loss of interest in Bitcoin among traders.
While such declines paint a short-term negative picture, periods of low interest often mark the start of new opportunities in the crypto market, according to analysts monitoring market sentiment.
Latest data from CryptoAppsy shows that Bitcoin continues to hover around $77,000 with no significant uptick in market participation. Since investor sentiment remains subdued, momentum for a decisive move is lacking.
Liquidations and Changes in Open Interest
Bitcoin researcher Axel Adler Jr highlighted recent shifts in liquidation pressure. As of April 30, the seven-day indicator turned positive at +28.7, signaling a change in market dynamics. Both long and short positions have been liquidated at a higher rate, with a total of $604 million in positions closed in just 24 hours.
Despite short-term fluctuations, the 30-day average remains negative. This ongoing trend suggests that overall, longer-term liquidations continue to weigh on Bitcoin’s price movement.
The amount of open interest has also dropped. The seven-day average has declined from over 300,000 BTC to around 292,000 BTC. Within the past 10 days, between 8,000 and 9,000 BTC in leveraged positions have exited the market, and daily fluctuations in open positions remain negative.
Analysts point out that for Bitcoin to stage a meaningful recovery, a clear increase in both open interest and spot market volumes would be needed. Otherwise, the price is expected to consolidate in a sideways pattern around the $77,000 resistance zone.
