Bitcoin Exchange Supply Nears 5-year Low After $2 Billion Buy This Week

Bitcoin continues to struggle beneath a month-long downtrend after failing once again to break above it. The crypto king is trading without clear support from macro financial markets, leaving its trajectory uncertain. 

However, investors appear increasingly active, and their accumulation could help stabilize price action if institutional capital joins in.

Bitcoin Holders Are Stepping Up

Exchange balances have seen a sharp decline over the past week, signaling renewed confidence among holders. More than 23,385 BTC have been withdrawn from trading platforms in seven days, representing over $2.15 billion in accumulated supply. This shift has pushed exchange reserves to their lowest level since January 2021, a period associated with strong bullish conviction.

Such pronounced outflows often reflect longer-term holding behavior, reinforcing optimism even during bearish conditions. With less available supply on exchanges, selling pressure eases, improving the likelihood of a potential recovery. This investor-driven accumulation could provide meaningful support for Bitcoin if broader market forces stabilize.

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The Bitcoin Trend Accumulation Score is also signaling noteworthy activity. Distribution has eased considerably at current price levels, with smaller holders accumulating aggressively and larger cohorts accumulating at a moderate pace. This dynamic reflects growing retail confidence and reduced sell-side pressure across several wallet groups.

However, the absence of strong “smart money” participation remains a concern. Large institutional holders tend to influence price direction more significantly, and their hesitation could hinder Bitcoin’s ability to convert retail-driven accumulation into a sustained rally. 

BTC Price Remains Stuck

Bitcoin is trading at $92,047, holding above the critical $91,521 support level while remaining trapped under the month-long downtrend. Recovering from this position requires a decisive breakout, which has yet to materialize despite recent attempts.

Invalidating the downtrend demands a flip of $95,000 into support. Given the ongoing accumulation and tightening of exchange supply, such a move remains possible. Additional support from institutional buyers would further strengthen Bitcoin’s path toward $100,000, restoring bullish momentum.

If large holders remain sidelined, Bitcoin may continue to struggle. A failure to sustain support could send BTC back below $89,800 and toward $86,822. This would reinforce bearish sentiment and delay recovery attempts.

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