The leading digital asset, Bitcoin, is experiencing significant pressure this week as key market participants pull back from both derivatives and spot accumulation. This shift raises concerns about a potential decline toward $105,000.
Recent on-chain data indicates that major holders have drastically reduced their exposure to perpetual futures in the last week, retreating by double digits. Concurrently, large Bitcoin holders are slowing down their accumulation, further exacerbating the bearish sentiment surrounding the cryptocurrency’s price momentum.
Analysis from Nansen reveals that the top 100 wallet addresses in the crypto space have slashed their perpetual futures exposure by 1,526 contracts over the past week, marking a 65.7% reduction. This decrease highlights a diminishing confidence among key traders regarding Bitcoin’s short-term prospects.
The steady decline in Bitcoin’s value has prompted a significant withdrawal from perpetual futures by these main holders, signaling that they are currently unwilling to assume risk until more definitive bullish signals emerge. This reluctance not only impacts liquidity in Bitcoin’s perpetual futures market but also makes it more susceptible to volatility and sharper downward movements.
Furthermore, it’s important to consider the behavior of Bitcoin whales holding between 10,000 and 100,000 coins. This group has also played a role in the current downturn, having reduced their supply by 1% in the past week, equating to the sale of 20,000 BTC. Historically, increased buying activity from these large holders has provided critical support during market downturns. Their current retreat signals a lack of necessary buy-side pressure to prevent further declines.
On the technical front, Bitcoin’s daily chart reveals a falling Relative Strength Index (RSI), which supports the prevailing bearish sentiment. Currently resting at 37.88 and trending downwards, the RSI suggests diminishing demand for the asset. The RSI operates on a scale from 0 to 100, where values above 70 indicate overbought conditions and a potential for correction, while values below 30 indicate oversold status and a chance for a rebound. Given that Bitcoin’s RSI is nearing the oversold threshold, there is a possibility that momentum could continue to push prices down toward support levels around $107,557. Should this support fail to hold, the price could further decline to around $103,931.
Conversely, should market sentiment shift positively and accumulation rise, Bitcoin could potentially rebound, aiming to reclaim a position above $110,034. The current landscape underscores the volatility and uncertainty facing investors and traders in the digital asset space.
