BTC Consolidation Continues: Is This a Sign of an Impending Rally?

BTC Consolidation Continues: Is the Market Losing Momentum?

On Sunday, March 23, Bitcoin (BTC) began trading at $84,000, prolonging its three-day consolidation phase. Bitcoin trading volumes have decreased from 22,900 BTC exchanged on Binance on March 20 to merely 5,420 BTC at the end of Saturday, March 22, as shown in the graphic above.

Why Bitcoin Remains Stable at $84K Despite a 75% Drop in Trading Volume?

This shows that huge Bitcoin investors have been conducting significant trades, counteracting the impact of retail traders’ passivity. Furthermore, Bitcoin‘s flat price action inside a 1% range does not provide large profit margins, and high-frequency traders generally prefer dynamic conditions.

Because of this low market volatility, whales can avoid over-the-counter costs and make huge purchases on Bitcoin spot markets without significantly altering prices. These elements help to explain why, in spite of a 75% drop in trade volumes over the last few days, BTC has remained stable at $84,000.

Bitcoin Traders Stay Bullish Despite Declining Open Interest

Market data shows that open interest in Bitcoin futures has dropped by 1.77% to $51.98 billion, while open interest in options has also slightly declined by 0.54% to $33.51 billion. Across all important metrics, Coinglass data indicates a generally negative outlook, indicating less speculative activity, including a noteworthy drop of 79.28% in options volume.

Even yet, the long-short ratio has been near neutral at 0.9589 during the past day, with a stronger inclination toward long positions on OKX and Binance. This indicates that even if open interest has dropped, present traders are still positioning themselves for an upward rise.

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