Bitcoin Stalls Below $77K As Spot Volumes, Leverage Decline

Bitcoin’s (BTC) attempt to trade above $77,000 have failed multiple times over the past week, despite traders managing a one-day breakout to $79,500. Data show short-term holders taking profits as the rally peaked, sending 150,000 BTC to exchanges since April 15.

Crypto analyst Darkfost noted the continued fragility among short-term holders (STHs), or wallets holding BTC for less than 155 days. As the price rose over the past two weeks, BTC transfers from these wallets to exchanges increased.

Three consecutive sessions saw 65,000 BTC, 54,600 BTC and 39,000 BTC sent to exchanges and these flows may have prevented Bitcoin from overtaking the resistance level at $80,000.

BTC short-term holder supply to exchanges. Source: CryptoQuant

Spot volumes also declined sharply. BTC activity has dropped to levels last seen in September 2023, near the end of the previous bear phase. Binance recorded a monthly decline of about $25 billion in volume. Gate.io also saw a $13 billion drop, while OKX volumes fell by roughly $6 billion.

This indicates weaker investor conviction to build spot exposure at current price levels. Darkfost explained,

“This contraction in volumes therefore reflects a temporary loss of interest in Bitcoin. While declining spot volumes can suggest negative short-term momentum, these phases of apathy are also often where new opportunities begin to emerge.”

BTC spot trading volume. Source: CryptoQuant

Bitcoin needs fresh demand from leveraged traders

Bitcoin researcher Axel Adler Jr. highlighted a shift in liquidation pressure, with the seven-day oscillator turning positive and reaching +28.7 by April 30. Both the long and short positions have been squeezed more frequently, with total crypto liquidations reaching $604 million over the past 24 hours.

Bitcoin futures long-short liquidations dominance. Source: CryptoQuant

The shift supports the price in the near term. The 30-day average remains slightly negative, keeping the broader bias tied to prior long liquidations.

Open interest shows where traders’ urgency may be lacking. The seven-day average dropped to about 292,000 BTC from above 300,000 BTC. Around 8,000–9,000 BTC in leverage has been removed over the past 10 days, with daily changes still negative.

The price continues to press against $77,000, with no rise in participation. A stronger move higher would likely require open interest to increase and spot volumes to expand, signaling new capital entering the market rather than futures positions being forced to close.

This article is produced in accordance with Cointelegraph’s Editorial Policy and is intended for informational purposes only. It does not constitute investment advice or recommendations. All investments and trades carry risk; readers are encouraged to conduct independent research.

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