The data suggests that Bitcoin traders are currently looking to accumulate between $100,000-$200,000.

The key takeaways

•  Bitcoin’s outflow/inflow monthly ratio dropped to 0.9. This signals renewed confidence in the long term and increased accumulation.

• BTC is still trading in the tight range of $100,000 to $110,000 despite aggressive short side pressure.

• The fact that over 19,400 BTC was moved from individual wallets to institutions indicates a strategic position by the long-term owners.

Bitcoin, which has surpassed the $100,000 mark on May 8 (BTCPrice has closed each day over the psychological level. BTC has posted lower range deviations to $98,300, but the crypto asset is close to reaching new highs over $111800. 

A price drop of 9% to $100,000 may not be a big deal, but one indicator suggests the $100,000-$110,000 range could represent the bottom for BTC before it enters another parabolic phase during the second half in 2025. 

CryptoQuant data indicated Market activity indicates a renewed confidence in the long term. Data from onchain shows that outflows are significantly more than inflows. The monthly outflow/inflow ratio has fallen to 0.9, a level not seen since the end of the bear market in 2022 and one that historically signals strong demand.

This ratio is used to gauge sentiment. It measures the amount of coins that are being moved out and in. The reading of a ratio below 1 indicates that the investors have moved assets from the exchange, which is usually indicative of accumulation. Values above 1.05 were previously associated with higher levels of sell-off pressure or local market tops.

This latest fall is strikingly similar to the drop seen in December 20,22. It marks Bitcoin’s bottom macro level near $15,000. The inflection was followed by a multimonth sustained rally.

It is clear that a bottom structure has formed, given the dominance of current outflows. If past patterns are repeated, Bitcoin could be nearing a pivotal demand-driven point that will mark its next bullish phase.

Related: Bitcoin news update: BTC range tightening hints at price break to new highs

Bitcoin absorbs short-term traders’ pressure to sell.

Despite sustained sell-side aggression on Binance derivatives over the past 45 days, Bitcoin has held its ground within a tight $100,000–$110,000 range. Cumulative Volume Delta (CVD) data remains Negative, indicating consistent pressure on short sellers from the takers. But the fact that the price cannot break below the current level suggests the flow of money is being absorbed.

The onchain movement that points towards institutional change may strengthen this structure resilience. As observed Maartunn has reported that over 19,400 BTC, worth approximately $2.11billion was moved on Tuesday to institutional-grade address from dormant Wallets. The coins were previously dormant for between three and seven years. This highlights the importance of this move.

These transfers tend to be planned. Such actions are usually associated with strategic positioning. This suggests that big entities might step in when the prices remain stable amid short-term pressure.

Bitcoin may be forming a low near $100,000, as the persistent selling flow, tepid downside reaction and mass accumulation support that argument. The short-term fluctuations may continue, but the institutional bid could prevent a significant correction.

Related: Bitcoin price gained 72% and 84% the last two times BTC holders did this

This article contains no investment recommendations or advice. Risk is inherent in every investment decision and trade. The reader should always do research prior to making a final decision.