According to Santiment, roughly 209,000 BTC have been withdrawn from exchanges over the past six months, reducing the available supply by about 1.08%.
Instead of panic selling, investors are moving their coins into cold storage, showing a clear reluctance to sell even amid a market decline. Analysts see this as a positive signal: fewer coins on exchanges mean lower risk of panic selling — often a sign that the market is entering a stabilization phase.
Selling Pressure Intensifies
Still, the decline continues. After breaking below the $107K–$105K range — a long-standing key support — Bitcoin fell toward $104K. That’s a 3% drop in 24 hours, 8% weekly, and 14% monthly. The total crypto market capitalization decreased by 3.6% over the past day to $3.47 trillion.
The main driver has been massive liquidations of leveraged positions. Data from CoinGlass shows about $436 million in long positions wiped out within two days, while short positions lost only $20 million. The Fear and Greed Index has dropped to 24 points, reflecting heightened anxiety among both retail and institutional investors.
Key Levels Could Define the Next Move
Technical analysis points to a possible continuation of the decline. If the fall persists, Bitcoin could test $103.6K, the local low reached during October’s “Black Friday” crash, when the crypto market lost about $20 billion in a single day.
The next crucial area lies near $100,000 — a key psychological barrier. A break below this zone could send the asset down to $98,000–$97,000, near the 127.20% Fibonacci retracement level. The Relative Strength Index (RSI) is holding around 36, suggesting the market isn’t yet oversold and may have room to fall further.
To restore confidence, analysts believe Bitcoin must climb back above the $107K–$105K corridor and reclaim it as support — only then could buyers regain control.
Analysts Split on Outlook
Despite the pullback, many experts don’t view it as the start of a new bear cycle. Analyst Altcoin Sherpa reminded that similar corrections occurred when Bitcoin dropped to $54,000 in mid-2024 and $76,000 earlier this year — both followed by strong rebounds.
“The market always looks the worst right before it turns,” Sherpa said, arguing that the shrinking exchange supply forms a strong base for future growth — when sentiment shifts, sellers will simply be gone.
In the meantime, short-term traders continue to cut losses while long-term holders accumulate. The decreasing exchange supply could tighten liquidity and fuel the next rally once optimism returns.
Still, the coming days will be crucial: if bulls manage to defend the $100,000 level, stability could return. If not, the market may face another downward leg — yet the conviction of long-term investors remains unshaken.