Bitcoin’s weekly trading volume has climbed to its highest level since March, signaling renewed activity among institutional players even as the price dropped below $105,000.
The increase in liquidity comes amid a volatile week marked by sharp corrections and renewed optimism for a late-October rebound.
Liquidity Returns as BTC Goes Down to $105K
Data shared by analyst Arab Chain revealed that Bitcoin’s 7-day moving average of trading volume has risen to about $3.68 billion, according to Binance figures, the strongest level in seven months.
However, the rise comes at a time when the price of BTC is declining, with the asset trading at $104,900 at the time of this writing. Still, the improving volume points to an influx of large traders gradually re-entering the market, with observers suggesting the behavior could mark a potential reaccumulation phase, where professional investors rebuild positions after recent price drops.
On October 10, the OG crypto saw more than $17,000 shaved off its price when it nosedived from $122,000 to about $105,000 after the U.S. and China crossed swords over new tariffs. On some exchanges, it went further south to $101,000.
That particular incident saw traders lose as much as $19 billion worth of leveraged positions, although a subsequent report by market technician Carmelo Alemán placed the actual losses at a much more modest $2.31 billion.
BTC did recover from the storm, going to about $116,000, before a series of dips pushed it back down to its current level just below $105,000. It also triggered another wave of liquidations, with nearly 300,000 traders seeing positions worth approximately $$1.1 billion closed out.
Analysis from CryptoQuant attributed some of the short-term weakness in the market to Binance-led selling pressure, noting a negative funding rate persisting for four consecutive days. Despite this, U.S.-based buying activity remains firm, reflected in a positive Coinbase Premium, suggesting strong spot demand that may offset futures-driven selling.
Bullish Backdrop and Technical Foundations
Despite recent pressure, the underlying market structure for Bitcoin remains positive. A technical perspective shared by market observer Axel Adler Jr. identified the $106,000 to $107,000 range as a major support zone, with a breach potentially leading to a test of the $100,000 level. According to him, as long as this foundation holds, the broader bullish trend is considered intact.
The flagship crypto has declined 4% in the last 24 hours and 12% over the past week, even though it maintains a 58% gain over the preceding year.
Historically, October has been a strong month for BTC, with a recurring seasonal pattern known as “Uptober” often seeing its most powerful gains in the latter half. CryptoQuant data indicates that exchange reserves typically shrink during this period as investors move coins into long-term storage, tightening supply and setting the stage for potential rallies.
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