Bitcoin Exchange Supply Falls To 6-Year Low — A Signal To Buy The Dip?

Bitcoins price decline continues as the crypto market adjusts following its recent all-time high.

This has triggered renewed debate among investors: is this the ideal moment to buy the dip, or could more downside pressure still be ahead？

Bitcoin Falls But Presents Opportunity

Exchange balances for Bitcoin have plunged to a six-year, four-month low, signaling growing investor accumulation. Since the start of October, roughly 45,000 BTC—worth over $4.81 billion—has been withdrawn from exchanges.

These consistent outflows reflect investors conviction that lower prices present buying opportunities amid broader market uncertainty.

This “buy the dip” sentiment has grown stronger as long-term holders accumulate at a steady pace. Historically, declining exchange balances correlate with reduced selling pressure, often preceding market stabilization or recovery phases.

Bitcoin Balance On Exchanges. Source: Glassnode

Bitcoins 30-day Market Value to Realized Value (MVRV) ratio currently sits at -7.56%, indicating that investors who bought within the past month are holding roughly 7.5% unrealized losses.

While negative MVRV readings often signal short-term pain, they have historically marked attractive entry zones for long-term investors.

The MVRVs dip into the “opportunity zone” suggests Bitcoin could soon witness a trend reversal if accumulation strengthens. Each past instance of this metric entering negative territory has been followed by a notable rebound.

Bitcoin MVRV Ratio. Source: SantimentBTC Price Aims To Jump

At press time, Bitcoin trades at $106,947, sitting below the critical $108,000 level that previously acted as strong support. This loss has heightened volatility across the market, but a rebound remains possible if buying momentum holds.

Should accumulation persist and investor sentiment strengthen, Bitcoin could reclaim $108,000. This would push it toward $110,000, with a potential extension to $112,500 if momentum builds further. Such a move would indicate renewed market confidence.