Bitcoin well selling slows as traders shift focus to key $59K level

Bitcoin (BTC) hit an all-time high of $68,300 in early Asian trading hours on Tuesday, fending off a whale sell-off. Selling in volatile markets also eased, with “beating positions becoming less aggressive,” according to a new analysis.

Main Receptors:

Large BTC deposits for Binance have decreased significantly, reducing the selling pressure.

Bitcoin analysts view the 200-week simple moving average at $59,430 as a key support level for BTC price.

Bitcoin whale sales are down

CryptoQuant exchange data highlights a “behavior change” by major players as Bitcoin whales on major exchanges.

As the chart below shows, when Bitcoin dropped to $60,000 in early February, whales were very active on Binance, sending up to 11,800 BTC to the exchange in one day.

Related: Six months of losses? Five things to know in Bitcoin this week

As a result, the monthly moving average (30-day MA) of the BTC exchange rose to about 4,000 BTC sent daily to Binance at the end of February, “reflecting a more transparent level of circulation from large holders,” CryptoQuant analyst Darkfost said in a post on Tuesday.

Since then, “the situation seems to have cooled significantly. The 30-day MA is now set at around 1,600 BTC per day sent to Binance,” the analyst said.

“This decline in whale deposits may indicate a slowdown in short-term selling pressure, as the larger players appear to be adopting a wait-and-see approach in this still-uncertain market environment.”

The figures support recent data showing that Bitcoin whales and sharks have been piling up over the past two months, a pattern that could eventually trigger an exit from the region.

The sharp decline in whale reserves coincided with a change in the net position of Bitcoin among exchanges, which fell to 89,710 BTC on March 26, marking the largest increase since December 2024, Glassnode reported.

The change in position, or the change in 30-day supply in exchange wallets, is -68,650 BTC at the time of writing on Tuesday.

Such flows usually indicate strong holdings by large holders, thereby immediately reducing sell-side pressure.

Additionally, Perpetual Cumulative Delta (CVD) increased 38.1% last week to -$361 million from -$583 million, indicating that sell-side pressure has eased.

“While remaining negative, the move indicates bearish positions are waning and buyer participation is beginning to recover.”

The 200-week trend line will be key for BTC price.

Bitcoin analysts agree that the damage is not over, with several indicators that BTC is entering a bear market “in the later stages”.

Traders have now shifted their focus to the 200-week simple moving average (SMA) at $59,430, which now serves as the last line of defense for Bitcoin.

As seen after the bear market of 2018 and the 2020 Covid-19 crisis, staying above this support level has already led to a significant recovery in BTC price.

However, losing this support will trigger another downward leg for BTC before bottoming out as seen during the 2022 macro crash.

“Bitcoin is still above its 200-week moving average ($59,000),” analyst Crypto Patel said in a recent X post:

“The same level that has proven every bull cycle in history. As long as $BTC holds this line, every dip is a gift.”

“The 200-week MA at $59K is the main support to look at right now,” said Collaborative analyst Anup Dungana, after confirming that Bitcoin has broken the bearish flag.

According to Cointelegraph, Bitcoin's next major support is now sitting at $60,000-$62,000, and losing it could see a deep correction towards $41,000, which is measured by the bear flag on the daily chart.