Bitcoin Dips Below $90K as Exchange Outflows Approach 35K BTC

Bitcoin has slipped below the $90,000 mark during the US market opening, following a return of selling pressure.

Key Takeaways

Bitcoin's volatility continues as US sellers push the price down below $90,000.
Liquidations remain steady, as many investors are hesitant amid unclear price movements.
There are signs of buying the dip across exchanges in the past two weeks, with over 35,000 BTC leaving platforms.

Bitcoin's price fluctuates significantly as trading begins on Wall Street, as per data from Cointelegraph Markets Pro and TradingView.

BTC/USD one-hour chart. Source: Cointelegraph/TradingView

After briefly surpassing $92,000 during the Asian trading hours, BTC/USD soon lost momentum, preventing a possible retest of the yearly opening price of $93,500. Crypto trader, analyst, and entrepreneur Michaël van de Poppe commented on the situation on X, urging caution and noting the mixed performance of altcoins amid Bitcoin's struggle against key resistance.

Van de Poppe also pointed out the significance of $86,000 as a potential lower boundary if upward movement does not materialize next.

BTC/USDT four-hour chart with RSI, volume data. Source: Michaël van de Poppe/X

In its latest market update titled "Asia Color," trading firm QCP Capital remarked that liquidations during this volatile period have remained "relatively modest." This may reflect a decreased willingness to engage in trading as general interest in crypto diminishes, potentially due to fatigue, caution, or indifference while traders await clearer market signals.

At the time of writing, total liquidations across the cryptocurrency market were recorded at $330 million, according to data from monitoring platform CoinGlass.

Crypto total liquidations (screenshot). Source: CoinGlass

Bitcoin Dips Below $90K as Exchange Outflows Approach 35K BTC

Market Sentiment and Bitcoin Supply Dynamics

In a related development, business intelligence firm Strategy announced a Bitcoin purchase of nearly $1 billion, but this news did not enhance overall market confidence. As previously reported, the firm increased its Bitcoin holdings by 10,624 BTC at an average cost exceeding $90,000 per coin.

Despite this significant buy, QCP noted that the demand for both Bitcoin and altcoins has extended to a broader range of exchange users. Notably, over the past two weeks, more than 25,000 BTC have exited exchange order books, with on-chain analytics from Glassnode suggesting total exchange outflows near 35,000 BTC.

BTC balance on exchanges. Source: Glassnode

Furthermore, QCP pointed out that Bitcoin ETFs and corporate treasuries now hold a combined total of BTC greater than that held by exchanges. This shift indicates a trend toward long-term custody, resulting in a reduced supply available for trading.

In summary, the recent movements in Bitcoin's price, exchange outflows, and market sentiment reflect an evolving landscape for cryptocurrency, highlighting both opportunities and challenges for investors.