Bitcoin price opened trading at the $84,000 level on Sunday March 23, extending its consolidation phase to three days. Multiple Derivatives trading signals observed in the last 24 hours suggest BTC may have found a bottom.
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 for three days. Looking at the chart below, 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.
When an asset’s price consolidates at a critical support level despite a persistent decline in trading volume, it often signals bullish undertones.
Bitcoin price today | March 23, 2025 | Source: TradingView
Firstly, this suggests that large Bitcoin investors have been executing significant transactions, counteracting the impact of retail traders’ inactivity. Beyond that, high-frequency traders typically prefer volatile conditions, and Bitcoin’s flat price action within a narrow 1% range does not offer wide profit margins.
As a result, 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.
$51.9 Billion Open Interest Suggests Bottom Formation for BTC Price Action
Bitcoin derivatives market data shows 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.
Bitcoin Open Interest Dips Below $52 billion, March 23, 2025 | Source: Coinglass
Liquidations data further supports the bottom formation narrative. Over the last 12 hours, $4.63 million in liquidations have 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
Bitcoin price forecast chart below shows BTC remains trapped in a tight range between $83,265 and $88,000, as conflicting signals from spot and derivatives markets suggest a prolonged consolidation phase.
However, sustained consolidation could also indicate a period of market indecision. Bitcoin price requires a decisive breakout from the $88,000 to $83,900 range before a clear directional trend emerges.
Bitcoin Technical Analysis
The Fibonacci retracement levels indicate immediate support at $83,265, while resistance looms at $86,363.22. A break above this level could see BTC retest the $88,866.76 resistance, signaling a bullish continuation.
However, waning trading volume, as seen in the lower histogram bars, suggests weakening momentum, raising the risk of a bearish breakdown.
If sellers take control, Bitcoin could dip 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 decisive breakout occurs, Bitcoin’s sideways movement suggests traders remain cautious, awaiting confirmation of a trend shift.
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