TLDR
- Bitcoin exchange reserves fall to lowest level since 2019 with 45,000 BTC moved off platforms.
- BTC’s MVRV ratio hits -7.56%, signaling recent buyers are down by 7.5% on average.
- Bitcoin loses $108K support level while long-term holders continue steady accumulation.
- A drop below $105K could open the way to $101,477 if selling pressure increases.
Bitcoin’s exchange supply has dropped to its lowest level since 2019, sparking new debate among investors. While the price of Bitcoin remains under pressure, long-term holders continue accumulating. Market watchers are now closely monitoring metrics that suggest current levels may offer entry points for patient investors. With selling pressure easing, the market is watching to see whether a trend reversal is near.
Bitcoin Supply on Exchanges Reaches 6-Year Low
Data from blockchain analytics firms shows that Bitcoin’s exchange supply has declined to levels last seen six years ago. According to Glassnode, around 45,000 BTC—worth more than $4.8 billion—was withdrawn from centralized exchanges since the beginning of October.
This ongoing trend suggests investors are moving their assets into long-term storage rather than keeping them on exchanges. These types of withdrawals are often linked to confidence in Bitcoin’s future price movement. When coins leave exchanges, they are less likely to be sold quickly, which may reduce selling pressure.
Exchange balances tend to rise during market uncertainty or panic selling. The opposite appears to be happening now, even as prices dip. This behavior signals that many investors may view this correction as a buying opportunity.
Long-Term Holders Continue Accumulation
On-chain data shows a steady increase in the amount of Bitcoin held by long-term holders. These wallets have historically remained inactive during short-term market drops, suggesting the current market is attracting strategic buying.
The 30-day Market Value to Realized Value (MVRV) ratio, as reported by Santiment, is now at -7.56%. This figure suggests that investors who purchased Bitcoin in the past 30 days are, on average, holding losses of about 7.5%.
Historically, a negative MVRV ratio has often marked periods when Bitcoin was trading below its fair value. These zones have seen buying interest increase, followed by eventual price recoveries. Each time this ratio dropped into negative territory in the past, it was followed by upward price movements.
Price Drops Below Key Support Level
As of press time, Bitcoin is trading at $106,947. This is below the $108,000 support level, which previously served as a critical point for buyers. The drop has increased market volatility, and investors are watching closely to see if accumulation continues.
If the buying trend holds and sentiment improves, Bitcoin may move back above $108,000. If that happens, technical analysts suggest a possible push toward $110,000 or even $112,500. This would require continued inflows from long-term buyers and stable broader market conditions.
However, if prices drop further and fall below $105,000, the downward trend could extend toward the next support zone around $101,477. That would likely test short-term confidence and may slow current accumulation.
Market Conditions Remain Uncertain But Watchful
Bitcoin recently hit an all-time high before pulling back. The current correction phase is now being met with large outflows from exchanges. Many investors appear to be positioning for a possible rebound, based on past market behavior.
“Declining exchange balances often show that investors are less interested in selling,” said a market analyst at CoinCentral. “It can be a signal that demand may return once confidence builds again.”
While market sentiment remains cautious, the combination of reduced exchange supply, growing accumulation by long-term holders, and the MVRV reading suggests a setup that traders are watching for potential recovery.
As prices hover just above a key support level, the coming days may decide whether Bitcoin buyers step in or if further losses unfold.
