Bitcoin consolidates as institutional interest declines

Bitcoin’s (CRYPTO:BTC) price has entered a consolidation phase after recent market volatility, with analysts noting a significant drop in CME Open Interest signaling caution among institutional traders.

Data from Alphractal reveals a $10 billion reduction in open positions over the past 90 days, the largest decline recorded, as investors unwind holdings amid uncertainty.

Despite this, Bitcoin briefly reclaimed $85,000 this week, suggesting renewed bullish sentiment.

The 30-day Open Interest Delta shows stabilization, while the 7-day metric transitions into positive territory, hinting at reduced short-term selling pressure.

Traders are closely monitoring key resistance levels, with a sustained break above $85,000 potentially triggering upward momentum.

Technical indicators reflect mixed signals: the Relative Strength Index (RSI) at 68 nears overbought conditions, while the Moving Average Convergence Divergence (MACD) indicates a bearish crossover, raising concerns of a short-term correction.

Experts remain divided on Bitcoin’s trajectory.

Standard Chartered projects a $200,000 price target by late 2025, citing institutional ETF inflows and macroeconomic factors.

VanEck and 10x Research offer more conservative estimates of $180,000 and $122,000, respectively, with volatility expected around Federal Reserve policy decisions.

“The market is awaiting an external catalyst to break consolidation,” noted one analyst, emphasizing the $85,000 support level as critical for maintaining bullish trends.

On-chain data reveals new whales accumulating Bitcoin aggressively, with addresses holding 1,000+ BTC acquiring over 200,000 tokens in March alone.

This accumulation aligns with historical patterns where large investors enter during price dips, signaling long-term confidence.

Meanwhile, trading volumes across major pairs like BTC/USD and BTC/ETH have declined by 10–15%, reflecting reduced retail participation

The consolidation follows Bitcoin’s 57% drop from its December 2024 peak, with prices oscillating between $74,000 and $109,590 this year.

Analysts compare the current phase to March 2024, when BTC traded sideways for eight months before rallying, suggesting a similar pattern could unfold.

“Bitcoin’s resilience above $85,000 is crucial. A breakdown might test $74,000, but the long-term outlook remains positive,” stated a market strategist.

As the market awaits clearer signals, institutional interest and regulatory developments remain focal points.  

The SEC’s recent dismissal of appeals against crypto firms and potential ETF approvals could reignite momentum, while macroeconomic policies under the Trump administration may further influence liquidity conditions.

At the time of reporting, the Bitcoin (BTC) price was $84,635.70.