The leading digital asset, Bitcoin, is facing significant pressure this week as key market players withdraw from both derivatives and spot accumulation, elevating the risk of a decline towards $105,000.
On-chain data reveals that major holders have significantly reduced their exposure in perpetual futures over the past week. Concurrently, a group of large Bitcoin holders has slowed their accumulation rate, contributing to the bearish pressure on price momentum.
Top Traders Reduce Futures Exposure, Whales Retreat
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BTC’s consistent downturn this past week has prompted a sharp decrease in perpetual futures positions among key holders, underscoring diminishing confidence in the coin’s short-term outlook.
According to Nansen, the top 100 wallet addresses in crypto have cut their perpetual futures exposure by 1,526 contracts over the last week, representing a 65.7% decline.
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When these large holders pull back their positions, it decreases liquidity in BTC’s perpetual futures market, making it more susceptible to volatility and sharper declines.
The reduction in positions also suggests that these major traders are hesitant to take on risks until clearer bullish signals appear, exacerbating the bearish trend.
Additionally, BTC whales holding between 10,000 and 100,000 coins have also played a role in the current decline.
Per Santiment, this group of coin holders has reduced their supply by 1% in the last week, selling 20,000 BTC.
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Historically, consistent whale buying has provided support for BTC during downturns. With these large holders now distancing themselves, the asset lacks the robust buy-side pressure necessary to stave off further declines.
Could the Price Drop Toward $103,000?
On the daily chart, BTC’s falling Relative Strength Index (RSI) supports this bearish outlook. This crucial momentum indicator currently stands at 37.88 and is trending downward, indicating decreasing demand.
The RSI gauges an asset’s oversold and overbought conditions, ranging from 0 to 100. Values above 70 suggest an asset is overbought and may face a correction, while values below 30 indicate it is oversold and may be due for a rebound.
With a current value of 37.88 and decreasing, BTC’s RSI indicates that the cryptocurrency is entering oversold territory. This trend may extend bearish momentum, potentially pushing the price toward $107,557.
If this support level fails to hold, BTC could drop to $103,931.
Conversely, if sentiment improves and accumulation increases, BTC could see a rebound and strive to rise above $110,034.
