Bitcoin (BTC) is showing signs of retail capitulation, with the number of non-empty wallets falling by nearly 109,000 since October as the cryptocurrency’s price slips below $75,000.
Data shared by crypto analytics platform Santiment on November 10 shows that Bitcoin’s total number of holders peaked at 59.99 million on October 16 before declining by approximately 108,700 to 59.88 million.
The decline coincides with renewed selling pressure, suggesting smaller investors are increasingly abandoning their positions.
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Meanwhile, Bitcoin’s supply on exchanges has fallen to approximately 1.28 million BTC, indicating that fewer coins are available on trading platforms.
Although declining wallet numbers point to weakening retail participation, continued exchange outflows could support a recovery if selling pressure begins to ease.
Bitcoin key technical level
The development also comes as Bitcoin approaches a potentially important technical level.
This was highlighted by cryptocurrency analyst Ali Martinez highlighted similarities between Bitcoin’s 2023 price action and its current market structure in an X post on November 10, with both periods showing the cryptocurrency revisiting a rising long-term moving average after a substantial rally.
In the 2023 comparison, Bitcoin tested this trendline around $19,000 to $20,000 before recovering toward $30,000.
In the current setup, BTC is trading around $74,250, approaching a comparable support region near $73,000 to $75,000.
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Holding this area could provide a foundation for another recovery, while a breakdown would expose lower levels, including $64,000.
Bitcoin price analysis
Bitcoin is trading below its 50-day simple moving average (SMA) of $81,697 but marginally above its 200-day SMA of $73,326.
The positioning suggests that short-term momentum remains bearish, while the 200-day average represents an important longer-term support level. A sustained break below $73,200 could expose BTC to further losses, with $64,000 emerging as the next major downside level.
Bitcoin’s 14-day relative strength index (RSI) stands at 37.78, indicating weakening buying momentum but remaining above the conventional oversold threshold of 30. A further decline toward that threshold could signal increasingly stretched selling conditions.
For a recovery, Bitcoin needs to defend the $73,000 to $75,000 support region and reclaim $78,000 to $80,000 before challenging its 50-day SMA near $81,700.
A decisive move above the latter would strengthen the bullish outlook, while continued weakness below the 200-day SMA would increase downside risks.
Featured image via Shutterstock
