Bitcoin is showing signs of weakness as spot trading activity continues to decline across major exchanges. According to market data, BTC spot volume has dropped to its lowest level since October 2023, showing that participation in the market has become much quieter.
This matters because low-volume markets usually have less liquidity. When market depth is weak, even a moderate wave of buying or selling can create sharper price moves. Although Bitcoin has recovered from its recent lows, the lack of strong trading volume suggests that the move may not have solid support behind it.
Another warning signal came from exchange inflows. On April 27, around 9,905 BTC moved onto exchanges, marking the largest single-day inflow in nearly 30 days. Exchange inflows do not always mean immediate selling, but they often show that holders are preparing to trade, reduce exposure, or exit positions.
The inflow happened while Bitcoin was trading near $77,358. With spot volume already thin, any increase in selling pressure could have a stronger effect on price action. Reports of institutional selling during the same period have also added to market fear.
Recent liquidation data also shows why traders are watching the downside closely. When Bitcoin recently fell below $77,000, more than $100 million in long positions were liquidated. At the same time, demand from U.S. investors weakened, as shown by a negative Coinbase Premium.
The key level now appears to be around $73,500. Roughly $1.4 billion in long liquidations are sitting near this zone. If Bitcoin loses support and moves toward this level, forced exits from leveraged long positions could create additional sell pressure.
This could turn a normal pullback into a sharper decline, especially in a market where liquidity is already thin. Short positions have mostly been cleared since March, while short-term holders have continued to add pressure on the sell side.
For now, Bitcoin’s next major test is whether it can hold above the lower support area. A clean breakdown toward $73,500 could trigger a wave of liquidations and increase the risk of a deeper correction.