Why Heavy Crypto Selling Often Signals Institutional Accumulation, Not Weakness
The post Why Heavy Crypto Selling Often Signals Institutional Accumulation, Not Weakness appeared on BitcoinEthereumNews.com.
TLDR: Institutional buyers require substantial sellers to build large positions without excessive slippage. Historical market bottoms form during heavy selling as ownership transfers to strong hands. Low-volume rallies without seller absorption often prove fragile and fail quickly under pressure. What traders interpret as resistance zones frequently represents patient institutional accumulation. Large sellers appearing in cryptocurrency markets often trigger concern among traders who view heavy supply as resistance. However, market structure suggests a different reality. Technical analyst Aksel Kibar argues that significant selling pressure enables institutional accumulation rather than preventing price appreciation. This counterintuitive framework challenges conventional wisdom about market dynamics. Understanding how major buyers require substantial sellers to build positions reveals why apparent resistance zones can precede strong rallies. Institutional Accumulation Requires a Substantial Supply Markets function as auctions where every transaction needs both willing buyers and sellers. Many traders expect prices to rise simply because demand exists. Yet without an available supply, meaningful position building becomes impossible. Pension funds seeking portfolio allocations and hedge funds scaling convictions cannot execute strategies in thin markets. Price gaps upward when liquidity disappears, but this creates poor entry conditions rather than sustainable trends. Slippage increases dramatically as large orders chase a limited supply. The result leaves institutions with smaller positions at worse average prices. This friction prevents rather than facilitates strategic deployment. When institutional sellers provide liquidity, conditions change entirely. Buyers gain time and stability to accumulate quietly. Volume increases as ownership transfers from short-term holders to long-term participants. Technical analyst Aksel Kibar explains this dynamic: markets cannot move higher sustainably unless strong hands enter, and strong hands require someone willing to sell size. The process traders interpret as price suppression often represents patient accumulation. What appears as capping actually allows sophisticated positioning. Retail participants see resistance, while institutions see opportunity. This…
Filed under: News - @ February 15, 2026 6:24 am