Bitcoin (BTC) Loses Major Support After Months
Bitcoin (BTC) experienced a nearly 3% drop on Tuesday, breaking below a crucial support level at $107,000. This zone had defined a key trading range for 130 days. CryptoQuant warned that this breakdown could lead to more downward momentum in the market.
Key Trading Range and Market Reaction
The price had been fluctuating between about $107,000 and $123,000 since mid-June, acting as a battleground for buyers and sellers. The recent price action shows vulnerability near the lower boundary of this range, indicating ongoing pressure and weakness.
On-Chain Data Shows Rising Demand
Contrasting with the price drop, Binance's on-chain data reveals increased self-custody activity, signaling growing demand. CryptoQuant highlighted that the 7-day moving average of Exchange Withdrawing Addresses on Binance climbed sharply from around 340 on October 30 to nearly 418 on Monday.
This trend is historically associated with accumulation behavior rather than preparation for selling, and suggests that some holders may now view the current price zone as attractive for long-term positioning.
Implications for Market Participants
As more Bitcoin is moved off exchanges into personal custody, it suggests a rise in confidence among certain holders who consider these levels favorable for holding rather than selling, potentially countering further price declines.
Author's summary: Despite Bitcoin breaking a major support level, growing off-exchange activity hints at accumulation, reflecting cautious optimism among some long-term holders.