The supply of Bitcoin exchange platforms is approaching its lowest level in five years, on-chain buying demand is strengthening, but institutions remain on the sidelines.
Bitcoin is under continuous pressure in a one-month downtrend, once again failing to break through a key trend line. The absence of clear macroeconomic catalysts makes Bitcoin's short-term movement still uncertain. However, on-chain data shows that investors are beginning to accelerate their purchases at lower levels.
According to data from Glassnode, more than 23,385 bitcoins (worth over $2.15 billion) have been withdrawn from exchanges over the past week, bringing exchange reserves to their lowest level since January 2021. Exchange outflows generally indicate an increase in long-term holding intent, while selling pressure decreases, which may support a potential rebound.
The on-chain accumulation score has also strengthened, with small holders actively buying, while large wallets continue to increase their holdings more slowly but remain in a net inflow situation, signaling an overall weakening of selling pressure. Nevertheless, the hesitation of institutional investors remains a potential hurdle. In the absence of massive purchases, the current accumulation led by individuals may not be sufficient to trigger a sustainable bullish trend.
On the price side, Bitcoin is currently trading around $92,047, remaining above the support level of $91,521, but has failed to break through the downward trend line. To reverse the current setup, Bitcoin must convincingly surpass the resistance of $95,000 in order to regain momentum towards $100,000.
If the market continues to lack buying pressure, Bitcoin could fall below $89,800 and slide further towards the $86,822 range, heightening short-term bearish sentiment. Overall, Bitcoin's price is going through a crucial observation phase, and capital flows will determine the direction of the upcoming market.
