Bitcoin (BTC) Faces Major Support Loss Amidst Rising Self-Custody Activity
Bitcoin's price falls below key support level, yet indicators suggest growing interest among buyers for long-term holding.
As the market displays volatility, Bitcoin (BTC) experienced a recent decline of nearly 3% on Tuesday, dropping below a crucial support level of $107,000, which had been stable for 130 days. This disruption could lead to further downward pressure on the market.
Break of Bitcoin’s Defense Line
Reports indicate that the support range of about $107,000 to $123,000 has been pivotal for buyers and sellers since mid-June. Despite ongoing price weakness, data from Binance indicates a surge in self-custody activity.
CryptoQuant reported an increase in the seven-day moving average of Exchange Withdrawing Addresses on Binance, rising from approximately 340 on October 30 to around 418 on Monday. This uptick signals a notable shift, with more market participants moving Bitcoin from exchanges to personal custody, which is usually linked with accumulation tendencies rather than selling intentions.
Indicators from the previous rising price contrasts with increased withdrawals, suggesting demand is developing around the $107,000 threshold, potentially providing some stability in the short term.
The critical factor remains whether the accumulation efforts are sufficiently robust to resist ongoing selling pressures. Currently, Bitcoin hovers around $104,000, prompting speculation on whether withdrawal trends will persist or taper off.
Heightened Activity Among Short-Term Holders
Short-term holders are becoming active again, though this doesn’t guarantee a local bottom for the market. CryptoQuant’s assessment reveals two groups of holders: those who possess BTC for one to three months and those for three to six months. Previous surges in price often saw support from the one-to-three-month holders, while the three-to-six-month group tended to accumulate during downturns.
Recent signs indicate that the three-to-six-month category is starting to accumulate yet does not demonstrate a fully developed trend, potentially illustrating hesitance to engage aggressively at current price levels.
