Selling pressure on Bitcoin is showing signs of fatigue as on-chain data indicates large buyers accumulated over 54,000 BTC during last week’s price drop. Analysts note that key metrics, like spot cumulative volume delta hitting deeply negative levels, often coincide with seller exhaustion. However, experts caution that while the pace of decline is decelerating, stabilization alone does not yet signal a definitive trend reversal, with the market still constrained by tight liquidity and subdued institutional flows.
On-chain data suggests Bitcoin sell-side pressure is beginning to abate following a steep decline. Analysts point to increasing demand from large buyers and the balance of aggressive buying and selling as evidence the drawdown could be losing steam.
Tim Sun, senior researcher at HashKey Group, stated, “From the perspective of price action and on-chain distribution, the pace of the decline is indeed decelerating.” He added that a signal for a definitive trend reversal has not yet appeared. The market remains constrained by tight liquidity, policy uncertainty, and subdued ETF and institutional flows.
Bitcoin is down more than 44% from its all-time high of $126,080, reached on October 6. It is currently trading around $69,600, according to CoinGecko data.
Spot cumulative volume delta remains deeply negative, at roughly minus $327 million. Glassnode analysts stated this level has historically coincided with seller exhaustion rather than fresh waves of distribution. This metric tracks the net balance between aggressive buyers and sellers in the spot market.
Large buyers, or whales, continue to buy the dip. On February 6, accumulation addresses bought 54,458 BTC during last week’s drop, according to CryptoQuant data. Sun noted, “Whale accumulation primarily serves to stabilize price ranges and absorb passive selling pressure rather than immediately triggering a trend reversal.”
The share of Bitcoin supply held at a profit has fallen to about 55%. Glassnode analysts wrote that such conditions are often associated with accumulation, as holders sitting on losses have less incentive to sell.
Some analysts caution against overinterpreting whale activity, noting shifting market dynamics. Jeff Mei, COO at BTSE, told Decrypt, “Bitcoin holdings are primarily held by institutions now, so it will largely hinge upon their buying decisions to propel the market upwards.” He believes the sell-off has already started to reverse.
