As markets remained choppy, Bitcoin (BTC) suffered a fresh decline of almost 3% on Tuesday as it fell below the critical support zone at $107,000, a major trading range that had remained intact for 130 days.

CryptoQuant noted that this failure could expose the market to further downside momentum.

Bitcoin’s Line of Defense Breached

According to the analysis, the established range between approximately $107,000 and $123,000 has served as the battlefield for buyers and sellers since mid-June, and price action reflected high vulnerability at the range floor. However, while the price continued to show weakness and remains under pressure near the bottom of this multi-month structure, on-chain data from Binance reveals a contrasting pattern that signals a rise in underlying demand.

CryptoQuant stated that the 7-day moving average of Exchange Withdrawing Addresses on Binance has increased sharply, rising from roughly 340 on October 30 to close to 418 on Monday, which indicates a growing cohort of market participants is moving Bitcoin off the exchange and into self-custody.

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.

The earlier opposing trend of falling price versus rising withdrawals suggested that demand was forming around the $107,000 zone, potentially offering short-term protection. Those withdrawal patterns signaled that certain buyers were attempting to build a base by shifting coins into self-custody and away from exchange sell-side pressure. But CryptoQuant noted that this signal alone was not a guarantee that support would hold.

The outcome, according to the analysis, was always based on whether the accumulation magnitude was strong enough to counter ongoing selling. With Bitcoin now trading around $104,000 and below that previously observed support area, the focus shifts toward whether this withdrawal trend continues to rise or begins to cool. The sustainability of this metric in the coming days will determine if buyers still step in at lower prices or if the breakdown below the range continues.

Rising Activity From STH Signals Early Accumulation

Bitcoin’s short-term holder cohorts are beginning to accumulate again, but this does not necessarily mean the market has found a local bottom. CryptoQuant’s analysis tracking Bitcoin’s Realized Price by UTXO Age Bands focuses on two short-term groups. First, those holding BTC between one and three months, and second, those holding between three and six months. These two cohorts are typically the most reactive during market corrections and tend to drive volatility.

In previous uptrends, especially from early 2024 to mid-2025, the realized price of the one-to-three-month band often acted as a first support line, as newer buyers defended their cost basis during pullbacks. Meanwhile, the three-to-six-month cohort has historically behaved in a contrarian way. It was found that their accumulation tends to rise when prices are falling, and fade when prices are rising.

The analytics firm observed that this three-to-six-month group has now started accumulating again, but the trend is not fully developed. This could mean that while these holders are stepping in, they may not yet view current prices as attractive enough for aggressive entry, or are waiting for more fear, capitulation, or deeper discount conditions to unfold before increasing their positioning in size.

The post Bitcoin (BTC) Loses Its Strongest Floor In Months: Dip-Buying Starts, But Lacks Conviction appeared first on CryptoPotato.

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Filed under: Bitcoin - @ November 4, 2025 8:06 am