Bitcoin fell below $113,000 on Monday as traders pulled back following a weekend sell-off triggered by U.S.-China tariff news. Over the past week, Bitcoin has shed roughly 10%, trading in a range between $109,883 and $125,023. The cryptocurrency now sits about 9% below its October 6 record high of $126,080.
Trading activity has also slowed. Daily volume dropped 25% to approximately $69 billion, according to CoinGlass data. Derivatives volume rose slightly by 0.14% to $109.97 billion, while open interest declined 1.8% to $73.36 billion. This combination of rising volume and falling open interest typically indicates traders are closing leveraged positions—a healthy reset following a volatile week.
Bitcoin Exchange Reserves Reach 10-Year Low
Data from CryptoQuant contributor Chairman Lee shows that Bitcoin stored on centralized exchanges has fallen to around 2.4 million BTC, the lowest level since 2015. By comparison, exchange reserves exceeded 3.5 million BTC in 2020. This steady decline marks one of the most consistent withdrawal trends in Bitcoin’s history.
Lee notes that when fewer coins are available for trading, selling pressure tends to ease. Historically, periods of shrinking supply have often preceded major rallies, such as in 2020 and 2021. The pattern suggests that while prices may appear weak in the short term, the underlying structure remains strong. As long-term holders, institutional investors, and ETFs continue moving Bitcoin into cold wallets and regulated custody, supply on exchanges will tighten further.
Post-Liquidation Reset Could Fuel Next Rally
Analysis by XWIN Research Japan highlights that leveraged liquidations following the new U.S.-China tariffs wiped out about $19 billion on October 10. Bitcoin briefly dipped to $104,000 before stabilizing.
Historically, large liquidation events—like those seen in 2021—tend to reset the market rather than crush it. Once leverage is cleared, spot demand often returns, fueling recovery. This time, ETF inflows, institutional demand, and declining exchange balances point toward a similar scenario. On-chain metrics support this outlook: funding rates have normalized, and the adjusted SOPR (a key profitability ratio) has moved above 1.0, signaling a shift from panic selling to accumulation.
What appears to be weakness now could mark the start of a rebuilding phase, as has followed every major flush in Bitcoin’s history.
Bitcoin Price Technical Outlook
Technically, Bitcoin remains in a cautious zone. The 44 reading on the Relative Strength Index (RSI) indicates neutral momentum. Most short-term moving averages (10 to 50 days) suggest mild selling pressure, while momentum and MACD indicators show a slightly bearish bias.
The 200-day averages, around $108,000, act as solid support. As long as Bitcoin holds this area, the long-term structure remains intact.
A break above $116,000 to $118,000 would indicate fresh strength and could open the path back toward $125,000. If prices slip below $110,000, the next test could come near $105,000.
