The recent selling activity from major Bitcoin holders, often termed 'whales,' has noticeably cooled down. This development coincided with a sharp reduction in the amount of BTC flowing into cryptocurrency exchanges, suggesting diminished immediate selling pressure on the market.

BTC Price Action and Market Sentiment Shift

Bitcoin experienced a rise to an intraday high of $68,300 during early Asian trading hours on Tuesday. This upward movement occurred concurrently with the easing of selling pressure observed in derivatives markets.

Derivatives Market Easing Suggests Less Aggressive Bears

Analysis indicates that the bearish positioning in the market is becoming less aggressive. This sentiment aligns with the reduced activity from large-scale sellers across major trading platforms.

Declining Whale Deposits Signal a Change in Behavior

Data from CryptoQuant highlighted a significant shift in how large players are interacting with exchanges. Specifically, whale deposits of Bitcoin have seen a substantial decline across the board.

February's Distribution Phase vs. Current Slowdown

In early February, whales were highly active, sending up to 11,800 BTC to Binance in a single day. Analyst Darkfost noted that this pushed the monthly average of BTC exchange inflows toward nearly 4,000 BTC daily by the end of the month, reflecting a pronounced distribution phase by large holders.

However, the situation has since calmed considerably. The 30-day moving average for daily BTC deposits to Binance is now approximately 1,600 BTC. This decrease suggests that large players are adopting a wait-and-see approach in the current uncertain market environment, leading to a short-term slowdown in selling.

Accumulation by Whales and Sharks Reduces Sell-Side Pressure

The drop in whale deposits was accompanied by a massive outflow from exchange wallets. On March 26, the Bitcoin net position change across exchanges fell by 89,710 BTC, marking the largest spike observed since December 2024.

At the time of reporting on Tuesday, the 30-day change in supply held in exchange wallets stood at -68,650 BTC. Such significant outflows typically signal strong accumulation by large holders, which effectively reduces immediate sell-side pressure on the market.

Perpetual Volume Delta Shows Recovering Buyer Interest

Further evidence of easing bearish sentiment comes from the perpetual cumulative volume delta. This metric increased by 38.1% over the past week, moving from -$583 million to -$361 million, according to Glassnode.

While the metric remains negative, this improvement suggests that bearish positioning is softening and buyer participation is beginning to recover.

The Critical $60,000 Support Level

The trend line near $59,000 has emerged as the critical support level to watch for BTC price stability. Holding above this level has historically preceded significant recoveries for Bitcoin.

This historical precedent was evident following the 2018 bear market and the 2020 Covid-19 crash. Conversely, losing this key support could initiate another downward movement before the price finds a definitive bottom, similar to what occurred during the 2022 macro drawdown.

As one analyst stated, "The same level that confirmed every bull cycle in history. As long as $BTC holds this line, every dip is a gift."