More than 580,000 BTC left exchanges in less than a week as whales moved money, funding turned negative and Bitcoin retested key resistance zones.
Bitcoin is trading near $91,700 at the time of writing. It is up 6% in the past day, but has fallen slightly over the week. The recent recovery followed a decline below $81,000, but BTC is still trading about 27% below its ATH of over $126,000, which was reached in early October.
Big wallets are retreating as pressure eases
The decline in foreign exchange reserves followed months of steady outflows. However, the pace of the recent move was notable. It could indicate that larger holders have been withdrawing BTC from the exchanges, possibly into escrow or cold storage.
Meanwhile, on-chain data from Santiment shows that 91 new wallets holding at least 100 BTC have been added since November 11. The number of smaller wallets is decreasing, indicating lower participation from private users.
As reported by CryptoPotatoa key derivatives funding metric on Binance has fallen to levels not seen in nearly two years. This indicates increased selling from leveraged positions over the past few weeks.
Derivatives data shows a market reset
BTC’s total funding rate has turned negative, now at -0.0007. This reflects the lower long exposure in the futures market. It also suggests that short positions will increase, or that long positions will be closed.
At the same time, the Coinbase premium is still negative at -0.0135. However, this reading has improved from the deeper lows earlier this month. According to to Daan Crypto Trades,
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“The selling pressure on the spot market is decreasing significantly compared to the two weeks before.”
Important price zones in focus
Analyst Daan Crypto Trades too be to the $89,000 to $91,000 range as a zone to watch. It has acted as both support and resistance in previous cycles. The asset is now trading within that range.
Elsewhere, Captain Faibik noted that BTC is forming a descending widening wedge on the 4-hour chart. The analyst said the price “has probably hit rock bottom”, but added that bulls need to regain the $100,000 level for stronger upside potential.
Lennaert Snyder described $93,000 as a “make or break‘ level, saying it could decide whether the trend reverses or continues downward.
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