Bitcoin Traders See 14% Losses, But Is the Selling Pressure Finally Fading?

Bitcoin traders have faced a 14% decline in recent weeks, raising concerns about a potential deeper correction. However, on-chain data and market sentiment suggest that selling pressure may be easing, signaling a possible stabilization or even a recovery in the near term.

Bitcoin’s Recent Downturn: What’s Behind the Losses?

After reaching a multi-month high, Bitcoin experienced a significant pullback, leading to widespread liquidations and losses among traders. Several factors have contributed to the downturn, including:

• Profit-Taking by Whales – Large BTC holders have been offloading portions of their holdings, locking in profits from recent highs.
• Macroeconomic Uncertainty – Concerns over interest rates, inflation, and global financial markets have influenced risk asset sentiment.
• Increased Exchange Reserves – An uptick in Bitcoin deposits to exchanges suggests that traders were preparing to sell, adding downward pressure.

Despite these factors, recent market data indicates that the worst of the selling may be over.

Signs That Selling Pressure Is Fading

1. Declining Exchange Inflows

On-chain metrics show that the volume of Bitcoin moving to exchanges has started to decline, suggesting that traders may be holding rather than selling. A slowdown in exchange inflows often indicates that selling pressure is decreasing, reducing the risk of further steep declines.

2. Stabilizing Open Interest and Liquidations

Bitcoin’s futures market has seen a cooling-off period, with fewer liquidations compared to the initial sell-off phase. A stable open interest suggests that traders are reassessing their positions rather than continuing to exit en masse.

3. Strong Support at Key Levels

Bitcoin has held above key support zones despite the downturn. Analysts point to $72,000–$74,000 as a critical area where buyers have stepped in, preventing further declines. If BTC maintains these levels, a reversal could be on the horizon.

4. Long-Term Holders Remain Unfazed

Data from Glassnode and other on-chain analytics platforms indicate that long-term Bitcoin holders have not been selling in significant volumes. This suggests that the recent downturn has been driven mainly by short-term traders rather than a broader shift in sentiment.

With selling pressure showing signs of easing, Bitcoin’s next move will likely depend on several factors:

• If BTC reclaims $80,000, bullish momentum could return, pushing prices toward previous highs.
• If Bitcoin fails to hold support, a retest of lower levels, such as $70,000, could be possible.
• Macroeconomic events and institutional inflows will play a key role in shaping near-term market direction.

For now, traders are watching closely to see whether Bitcoin can regain strength or if another wave of selling will emerge. While short-term losses have been painful, the overall market outlook remains cautiously optimistic.