Recently, Bitcoin has had a notable correction and has come down about 5% from last week’s peak. This pullback has put around 1.27 million Bitcoin addresses in the red; these holders are now underwater compared to their purchase price. Despite this short-term decline, on-chain data reveals a pretty amazing narrative of historic buying activity just below the $100,000 mark—suggesting that this level could serve as a potent support zone if Bitcoin visits it again in the not-too-distant future. Historic Buying and Strong Support at Key Psychological Level Bitcoin’s price has swung widely over the past few weeks, but significant demand has emerged near the $100,000 mark. Erik Vorhees, a cryptocurrency entrepreneur based in Puerto Rico, likens the situation to a game with two players. On one side are the sellers, who have managed to push the price below $100,000. On the other are the buyers, who keep snapping up Bitcoin anytime the price gets near this level. Important psychological benchmarks often exist in financial markets, serving as levels where many buyers and sellers seem to congregate. With respect to Bitcoin, the $100,000 price level has taken on huge amounts of attention, both as a price that buyers might be attracted to and as a price that some traders might be selling into. We could describe it as the price level with the most dual attraction, given that it is also a round number. This paragraph is essentially a translation of the previous one with slightly different wording. Why is the price level with the most dual attraction also a good candidate for a psychological price level? Because, as way too many commentators have also already pointed out, it’s a.k.a. a round number. Moreover, this latent support correlates with larger market demand patterns that have stayed strong during this cycle—even following Bitcoin’s former all-time highs. Demand for Bitcoin is now approaching the peak levels of the previous bull market. On average, about $1.8 billion in fresh capital flows into the market each day – roughly on par with the November 2021 high around $64K. The largest inflows of this cycle occurred at approximately… pic.twitter.com/XdfdUMaaKL — Axel Adler Jr (@AxelAdlerJr) May 30, 2025 Investor Demand Mirrors Peak Levels of Previous Bull Market The total demand for Bitcoin is still extremely high, almost reaching the demand levels that we saw in the last bull market. Daily, Bitcoin sees fresh capital inflows of around $1.8 billion on average. This is about equivalent to what was happening in the 2021 bull run when we were trading at about $64,000. This cycle’s, from about $73,000 and $92,000 price levels, most huge capital came in. At $73,000, the market recorded its most substantial peak inflows of $3.6 billion, while at $92,000, the inflows grew to even more extreme $4.5 billion levels. Investors keep on channeling wah-wah wealth into Bitcoin, despite its steady diet of ups and downs in the price department. This trend shows that the market still has a good appetite for Bitcoin, and it proves that investors are still willing to put down large amounts of capital even after Bitcoin has set new all-time highs. This also seems to act as a validation of sorts for the long-term value proposition of Bitcoin, and more than anything, it shows that amidst the short-term price corrections, the commitment to Bitcoin seems to be as strong as ever. ETF Outflows Signal Temporary Profit-Taking Amid Overall Strength On May 29 (Eastern Time), the U.S. spot Bitcoin exchange-traded funds (ETFs) saw a net outflow of $359 million. This halted a 10-day streak of consistent net inflows into these potential investment vehicles. Bitcoin has slid ~5 % from last week’s peak, putting 1.27M addresses in the red. But on-chain data shows heavy historic buying just under $100 k, suggesting this key psychological level could act as strong support; and perhaps fuel the next leg up if revisited. pic.twitter.com/38eGCnr1Kl — Sentora (previously IntoTheBlock) (@SentoraHQ) May 30, 2025 ETFs commonly see outflows interpreted as temporary profit-taking. Who could blame them? ETF inflows had reached dizzying heights of over $700 billion per year, and they were used to finance not just the 2017-2018 bull run in cryptocurrency prices but also the 2018-2019 recovery. Withdrawals from ETFs might raise some concerns, since they are such reliable tools that support the price of cryptocurrencies, but those withdrawals are not necessarily a sign of a weakening market. This movement also reflects the broader dynamics of Bitcoin investment, where participants in the market regularly seek to optimize returns and create better-performing investable products. That this outflow happened after a long run of not just inflows but also net inflows into the Bitcoin space highlights that there really is ongoing interest in not just investing in Bitcoin itself but also ongoing engagement in Bitcoin-related financial products. ETH experienced unusually large exchange outflows this week while it outperformed Bitcoin; both signs that traders are buying and moving coins into cold wallets. pic.twitter.com/ce3C4Hwx3A — Sentora (previously IntoTheBlock) (@SentoraHQ) May 30, 2025 Looking Ahead: Resilience and Potential for Next Rally In general, the Bitcoin price decline of 5% appears to be a healthy correction rather than a dip that foretells sustained weakness. A review of buying in the dip from the historic lows under the $100,000 level reveals not only unrelenting support from retail investors but also strong participation from institutional investors. Should Bitcoin return to the crucial support zone near $100,000, the collection of buying demand there might serve as a launch mechanism, propelling fresh enthusiasm among investors and very possibly signaling the start of the next bull market. Over the next few weeks, investors and analysts will be keeping an eye on whether Bitcoin can maintain this critical level and push on toward new all-time highs or if it’s going to be shoveled by market forces into a prolonged period of consolidation. Currently, the on-chain data and inflow trends paint a mildly optimistic picture despite the recent volatility. They suggest that Bitcoin is increasingly being treated as a reliable digital asset that attracts a great deal of global capital. Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services. 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