Bitcoin Gains Steam as Selling Pressure Eases and Exchange Inflows Fall

Bitcoin has experienced steady gains since the start of the week, closing in positive territory over the last four days. While these short-term gains are notable, a deeper look at market conditions reveals a significant shift in recent weeks. A key indicator of this shift is the decrease in the number of coins moving onto exchanges, suggesting that investors are less inclined to sell. This trend is a crucial sign that overall selling pressure is easing.

Bitcoin Sees Easing Selling Pressure

Bitcoin briefly fell to $80,000 on November 21 but has since climbed to a one-month high near $94,000. This recovery is occurring as fewer coins are being transferred onto exchanges, and selling activity from large holders has decelerated. These trends generally contribute to enhanced market stability.

Over the past three weeks, the volume of Bitcoin deposited onto exchanges has seen a sharp decline, dropping from 88,000 BTC to 21,000 BTC. This reduction reflects a gradual decrease in selling activity that had been building. A significant portion of this slowdown can be attributed to the actions of large investors, often referred to as whales. Specifically, their contribution to exchange deposits decreased from 47% in mid-November to 21%. Concurrently, the average transaction size for these large investors diminished by 36%, falling from 1.1 BTC to 0.7 BTC.

These shifts in market behavior were already evident prior to the Federal Reserve's recent decision. The Fed cut the key interest rate by 25 basis points, bringing it to the range of 3.5%–3.75%. This marks the third reduction in the interest rate during 2025.

Bitcoin Set for Near-Term Gains

The slowdown in selling pressure follows a period of substantial market losses. Bitcoin dipped below $100,000 on November 13, during which time whales and short-term traders incurred realized losses totaling $646 million. This figure represents the largest observed losses since the middle of the year.

In aggregate, net losses have reached approximately $3.2 billion in recent weeks. This level of loss appears to have effectively removed more vulnerable holders from the market, thereby lessening the pressure of forced selling. While such significant losses can precipitate steep price declines during periods of market weakness, the abatement of this pressure often paves the way for more stable price movements.

Should selling activity continue to remain at low levels, Bitcoin could experience further upward price movement in the near term. Key levels to monitor, based on both on-chain metrics and historical resistance points, are emerging.

• •
  Bitcoin may see an increase toward $99,000. This level aligns with the lower range of the Trader On-chain Realized Price indicator, suggesting initial potential for upside if current market conditions persist.
• •
  Further upward movement faces key resistance at $102,000, which is near the one-year moving average. Additional resistance is observed around $112,000, corresponding with the upper range of the same on-chain metric. These areas indicate potential points where upward momentum might encounter stronger selling pressure.

Rate Cut Offers Relief, but History Weighs on Momentum

In addition to these resistance levels, the recent Federal Reserve rate cut could influence short-term price action, potentially triggering a brief relief rally. However, historical trends indicate that Bitcoin often experiences downward pressure following FOMC announcements. Analyst Ali Martinez has noted that in 2025, the only short-lived rally following such an announcement occurred in early May.

Currently, the cryptocurrency is trading within a corrective channel, priced around $93,731. Resistance is noted in the range between $94,000 and $96,000. Any sustained upward movement will be contingent on buyers successfully overcoming these barriers to maintain positive momentum.