Bitcoin extended its decline on Thursday, slipping to the $85K region after facing another firm rejection at its multi-month descending trendline.
While price momentum remains weak, new on-chain data from CryptoQuant indicates that continued BTC leaving exchanges suggests investors are positioning for a longer-term recovery, despite short-term pressure.
Bitcoin rejected again at the downtrend — momentum remains fragile
The 12-hour chart shows Bitcoin testing its descending trendline multiple times this month, only to be rejected on each attempt.
The latest rejection near $90K triggered renewed selling, sending BTC back into its lower consolidation band.
Source: TradingView
The chart also highlights a pattern of bearish breakouts from rising wedge formations, reinforcing the broader downtrend. Momentum indicators remain weak, confirming a market struggling to find bullish conviction.
This puts short-term action firmly in the hands of sellers, with $84K–$86K acting as the immediate support zone to watch.
Large BTC outflows resume on Binance despite falling prices
However, on-chain activity tells a more nuanced story.
CryptoQuant’s exchange netflow chart for Binance shows consistent negative netflows throughout December, meaning more BTC is being withdrawn than deposited—even as price trends lower.
Source: CryptoQuant
Key signals:
- Multiple –2,000 to –4,000 BTC netflow spikes appeared during the sell-off.
- Outflows intensified each time BTC dropped below key levels.
- The pattern mirrors prior accumulation phases where long-term holders quietly withdrew coins while price corrected.
Persistent exchange withdrawals typically signal reduced spot selling pressure, as coins move into cold storage rather than back onto the market.
This dynamic suggests the recent correction may be driven by derivatives leverage and trend-based selling—not sustained spot distribution.
What this divergence implies
The combination of technical weakness (trendline rejection) and bullish on-chain behavior [net outflows] creates a split-signal environment:
- Short-term: BTC remains vulnerable as long as it trades below the descending trendline and fails to reclaim $90K.
- Mid-term: Continued outflows point to a market quietly tightening supply, which has historically preceded rebounds or new accumulation bases.
If withdrawals persist while price consolidates, BTC could be forming the groundwork for a trend reversal once broader sentiment stabilizes.
Final Thoughts
- Trendline rejection keeps BTC in a short-term downtrend, with bears controlling momentum.
- Large exchange outflows suggest long-term holders are buying the dip, indicating underlying confidence despite price weakness.