Bitcoin (BTC) remains resilient above the $100,000 mark despite increased selling from long-term holders and a noticeable shift in liquidity toward traditional markets. The largest cryptocurrency is attempting to establish a new floor after a week-long decline that erased nearly 13% of its value over the past month.

As of early Tuesday trading in Hong Kong, BTC hovered around $106,500, while Ethereum (ETH) held near $3,620, both showing signs of stabilization after steep drawdowns through late October.

Liquidity Shifts Back to Equities

According to Singapore-based market maker Enflux, the current market weakness reflects a “macro rotation” rather than a crypto-specific downturn. In a note to CoinDesk, the firm said liquidity is flowing out of crypto and back into equity markets — particularly AI and fintech stocks, which continue to capture investor attention.

“Wall Street is gearing up for another leg higher, powered by liquidity and infrastructure bets, while crypto continues to test where its floor truly lies,” Enflux noted.

This view aligns with a broader sentiment across global markets that risk capital is being reallocated toward sectors showing stronger near-term growth narratives. With the U.S. Federal Reserve’s latest rate decision approaching, traders are positioning around traditional assets, temporarily draining liquidity from crypto exchanges.

Profit-Taking by Legacy Bitcoin Holders

On the other hand, QCP Capital argues the current sell-off is less about macro conditions and more about internal market behavior. In its daily update, the firm pointed to profit-taking by long-term Bitcoin holders — often referred to as the “OGs” of the ecosystem — as a primary factor behind the recent selling pressure.

On-chain data shows that roughly 405,000 BTC in long-held supply moved over the past month, much of it flowing to centralized exchanges like Kraken. Despite this, prices have managed to hold firm above $100,000, suggesting that market liquidity remains deep enough to absorb significant selling.

“The market has absorbed legacy supply without breaching key support,” QCP wrote. “Leverage remains low and funding rates flat, which indicates the absence of speculative excesses that typically precede deeper corrections.”

Consolidation Phase Continues

Both Enflux and QCP Capital agree that the crypto market remains in a consolidation phase, characterized by range-bound price action and muted volatility. Traders are currently caught between two competing narratives — profit-taking from long-term holders and capital rotation into traditional markets.

This dynamic has left Bitcoin oscillating within a relatively narrow corridor between $100,000 and $113,000, with technical indicators signaling a potential equilibrium forming near current levels.

Market data from CryptoQuant supports this assessment, showing declining exchange inflows from newer wallets while older coins — typically associated with experienced investors — are being redistributed. This pattern often accompanies late-stage corrections that precede longer periods of accumulation.

Macro Factors Add to Uncertainty

Beyond internal crypto dynamics, macroeconomic factors continue to influence sentiment. The recent hawkish comments from the U.S. Federal Reserve and strong equity market performance have pressured risk assets, including Bitcoin.

However, analysts note that BTC’s ability to remain above the six-figure mark despite these headwinds underscores structural resilience in the asset class. Institutional exposure through spot Bitcoin ETFs and improved liquidity conditions have helped cushion against deeper drawdowns.

At the same time, Ripple’s acquisition of Palisade has drawn attention to continued institutional expansion in the blockchain payments sector, highlighting that innovation and consolidation persist even amid price weakness.

What Traders Should Watch

For traders, the key level to monitor remains the $100,000 support zone, which has so far acted as a strong psychological and technical base. A sustained break below this threshold could open the door to further downside toward $95,000–$97,000, while recovery above $110,000 may signal renewed bullish momentum.

Market makers caution that liquidity remains thin, particularly during U.S. off-hours, meaning sharp wicks and stop-hunting moves are likely in the near term. Until macro and internal factors align, BTC’s consolidation is expected to persist, with volatility gradually contracting into the year’s final quarter.

Bottom Line

Bitcoin’s current price action reflects a tug-of-war between long-term holders locking in profits and global capital rotating back into equities. While this has slowed upside momentum, BTC’s ability to maintain structural support above $100K signals underlying market maturity.

As liquidity conditions evolve and macro risk stabilizes, traders are likely to view current levels as a base-building phase, setting the stage for Bitcoin’s next major directional move — whether upward or downward — in the weeks ahead.