Bitcoin price still below $100,000 as exchange flows hit historic lows
Why bitcoin isn't growing further
Bitcoin price is wrapping up November with impressive gains of over 40%, cementing it as the most bullish month ever for the cryptocurrency. However, a parabolic move in the final week saw BTC falter near the psychological $100,000 mark, raising questions about its near-term price trajectory. Simultaneously, market metrics reveal a historic drop in Bitcoin exchange flows to Binance, signaling potential shifts in trader behaviour and market confidence.
BTC Flow from All Exchanges to Binance Hits Historic Lows
After climbing to $98,000 earlier this week, Bitcoin saw a sharp correction to $91,000 before recovering to $96,000. As of today, it is trading near a key support zone at $95,000. Analysts view this level as pivotal; holding above it could reinvigorate the push toward the elusive $100,000 milestone. A breach, however, may open the door to further declines.
Market trends signal confidence in Bitcoin outlook
Beyond price action, data from CryptoQuant highlights a significant trend: Bitcoin transfers between exchanges, especially to Binance, have reached historic lows. This shift is significant because Binance dominates global trading volumes, eliminating the need for traders to move assets across platforms for liquidity. Additionally, stablecoins like Tether (USDT) and USD Coin (USDC) now dominate inter-exchange transactions, replacing Bitcoin’s historical role as a bridge currency due to their lower volatility and transaction costs.
Market confidence also appears to be strengthening. Historically, sharp BTC inflows to Binance often coincided with panic-driven selloffs. The current reduction in exchange flows suggests that investors are less reactive to price corrections, indicating a more mature and composed market.The combination of reduced exchange flows and Bitcoin’s struggle to maintain momentum above $95,000 will likely set the tone for December. For now, all eyes remain on whether BTC can defend its key support level and reignite its march toward $100,000, or if the rally begins to cool.
Bitcoin, to close November with a historic monthly gain near 100k. The rally was fuelled by Donald Trump’s pro-crypto stance and strong institutional inflows.
