Bitcoin’s price trajectory could experience a period of consolidation through April and May, following a significant drop in selling pressure. According to CryptoQuant analyst Axel Adler Jr., daily selling volume on major exchanges has sharply fallen from 81,000 Bitcoin to 29,000 BTC. This reduction in selling volume suggests that Bitcoin may enter a phase of supply shortage, with fewer sellers and steady demand, setting the stage for the next price movement.

In addition to the decline in selling volume, a shift in the futures trading market reflects a change in trader behavior. In a separate post, Adler highlighted that bearish traders had surged into short positions following Bitcoin’s February all-time high, anticipating a further decline. However, this bearish pressure is now weakening, and trading patterns are shifting in a more neutral direction. These changes suggest that the market may be poised for consolidation rather than any immediate major movement.

Institutional investors, particularly through exchange-traded funds (ETFs), are now playing an increasingly important role in Bitcoin's price movement. As retail traders become less influential, Bitcoin's price is becoming more sensitive to macroeconomic factors such as shifts in Federal Reserve policy and inflation data. This growing institutional presence suggests that Bitcoin’s price is being influenced by a broader range of economic factors, which could add complexity to future price forecasts.

Another key indicator pointing toward a potential stabilization is the dominance of Binance in Bitcoin’s spot trading. Joao Wedson, another CryptoQuant analyst, pointed out that Binance’s trading volume is now eight times higher than that of Coinbase, and this increased dominance could signal a bullish trend for Bitcoin. Historically, Bitcoin has often seen price surges when Binance leads in trading volume, suggesting that this could be a positive development for the asset in the coming weeks.

However, not all indicators point to immediate gains for Bitcoin. Analysts at 10x Research have warned that rising inflation and newly imposed tariffs could negatively impact risk assets, including Bitcoin. With inflation expectations now at 5%, 10x Research believes that institutional inflows could slow, which may put downward pressure on Bitcoin’s price. Furthermore, they forecast that Bitcoin could fall below $80,000 this week, driven by multiple risk-off catalysts that may weigh on equities and spill over into the cryptocurrency market.

Despite these short-term risks, Bitcoin is currently trading at $83,530, within a seven-day range of $81,488 to $88,240. While immediate price movements remain uncertain, the drop in selling pressure points to a stabilizing market. This could lead to consolidation, allowing the market to absorb current risks and set the stage for the next significant move in Bitcoin's price.