Bitcoin holders removed more than $2 billion from exchanges this week as the cryptocurrency tests key support levels. BTC balances on trading platforms dropped to their lowest point since January 2021, signaling renewed confidence among investors despite price struggles below a month-long downtrend.
What Happened: Exchange Withdrawals
More than 23,385 Bitcoin left centralized exchanges over the past seven days, representing over $2.15 billion in accumulated supply. The withdrawals pushed exchange reserves to levels not seen in nearly four years, a period previously associated with strong bullish conviction among holders.
Bitcoin is currently trading at $92,047, holding above the critical $91,521 support level but remaining trapped beneath the downtrend that has capped price action throughout the past month.
The Bitcoin Trend Accumulation Score shows distribution has eased at current price levels. Smaller holders are accumulating aggressively while larger cohorts are accumulating at a moderate pace, according to data from Glassnode. This dynamic reflects growing retail confidence and reduced sell-side pressure across several wallet groups.
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Why It Matters: Institutional Hesitation
Pronounced outflows from exchanges often reflect longer-term holding behavior, which can ease selling pressure and improve the likelihood of price recovery. With less available supply on trading platforms, the setup favors upward movement if broader market forces stabilize. However, the absence of strong institutional participation remains a concern for Bitcoin's near-term trajectory.
Large holders tend to influence price direction more significantly than retail investors.
Their hesitation could hinder Bitcoin's ability to convert retail-driven accumulation into a sustained rally. Invalidating the downtrend requires a decisive flip of $95,000 into support, which would clear the path toward $100,000 and restore bullish momentum.
If institutional buyers remain sidelined, Bitcoin may continue to struggle. A failure to sustain current support could send the cryptocurrency back below $89,800 and toward $86,822, reinforcing bearish sentiment and delaying recovery attempts.
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