Bitcoin (BTC) Recovery Has Encountered Resistance as the Asset Remains Range-Bound Between $93,000 and $97,000.

Bitcoin's recent recovery has encountered resistance as the asset remains range-bound between $93,000 and $97,000. After briefly climbing late last month

Bitcoin’s recent recovery attempt has hit a snag as the asset remains in a tight range between $93,000 and $97,000.

After briefly making a run above the $97K zone late last month, the flagship cryptocurrency has struggled to maintain upward momentum.

At the time of writing, BTC is trading at around $94,305, showing a minor 1.3% decrease over the past 24 hours.

While price action has slowed down, activity on the backend of the market suggests underlying shifts in investor behavior.

New on-chain data points to a significant decrease in Bitcoin reserves held on Binance, the world’s largest cryptocurrency exchange by trading volume.

One of CryptoQuant’s contributors, Amr Taha, highlighted this development in a recent QuickTake post, signaling that over 51,000 BTC have been withdrawn from Binance wallets since mid-April.

This drop from around 595,000 BTC to around 544,500 BTC could indicate a recalibration in investor strategy, with growing interest in long-term holding or redeployment of assets outside centralized platforms.

What’s Driving the Bitcoin Outflows from Binance?

According to Taha, several factors may be contributing to this steep decline in exchange-held reserves. One explanation involves institutional investors and long-term holders transferring their Bitcoin into cold storage.

This off-exchange behavior is typically seen as a signal of longer-term conviction, as these participants aim to secure their assets and reduce the likelihood of short-term selling.

With the rise of custodial solutions and more institutional-grade wallets, this trend may reflect a natural evolution in market behavior.

Another key factor could be the increasing use of Bitcoin within decentralized finance (DeFi) and cross-platform arbitrage strategies.

According to Taha, entities may be withdrawing BTC to gain access to yield opportunities or deploy capital in other blockchain ecosystems.

Additionally, the recent positive flows into Bitcoin spot exchange-traded funds (ETFs), especially between April 21 and May 1, saw daily net inflows exceed the $2 billion mark on several occasions. This may have encouraged larger players to accumulate and withdraw Bitcoin in anticipation of further price appreciation.

Exchange Reserve Trends Offer Signals Amid Price Consolidation

Although Bitcoin’s price has remained largely stagnant for the past week, the shift in exchange reserve data could have broader implications for future price action.

Typically, a decrease in exchange reserves, especially from major platforms, is linked to a tightening of supply. As fewer coins are readily available for immediate sale, reduced liquidity can amplify the impact of incoming demand, particularly during bullish phases.

According to Taha:

Tracking reserve movements, especially when they deviate significantly from typical patterns, can offer valuable insights into institutional behavior and liquidity dynamics, both of which are crucial for sustained price trends.

A consistent drawdown of BTC from exchange platforms often sets the stage for renewed price movement, especially when combined with institutional accumulation and long-term holding behavior.

If these patterns persist, they may contribute to reduced sell-side pressure, allowing Bitcoin to challenge its next resistance zones, such as the psychological $100,000 level.