Bitcoin has experienced a quiet week, with price action stuck in a narrow range between $95K and $100K. Bulls have struggled to reclaim the $100K mark, while bears have failed to break the $95K support, leading to uncertainty about the next major move. However, fear and volatility spiked on Friday after the cryptocurrency exchange Bybit suffered a $1.4+ billion ETH hack, shaking investor confidence and raising concerns about security risks in the market.
Following the hack, CryptoQuant’s Head of Research, Julio Moreno, shared key data on X, revealing that Bybit’s Bitcoin reserves have decreased by ~2K BTC as the exchange moves funds and users withdraw their assets. Despite the decline, Bybit still holds a substantial amount of BTC in reserves, suggesting that withdrawals have been manageable and there is no immediate sign of an exchange-wide liquidity crisis.
While Bitcoin’s price has remained relatively stable after the news, investors are closely monitoring the situation. If sentiment worsens and fear spreads, further outflows from centralized exchanges could impact BTC’s short-term direction. The market remains on edge, waiting to see whether Bitcoin will hold key support or if increased uncertainty will trigger further downside pressure.
Market Reacts To Bybit Hack
Following Friday’s $1.4+ billion ETH hack on Bybit, the market sentiment flipped from slightly bullish to fearful in just a few hours. The sudden news injected uncertainty, leading to an increase in volatility across Bitcoin and the broader crypto market. Despite a swift and transparent response from the Bybit team, some investors panicked and withdrew funds, adding to the sell pressure on various assets.
However, Bybit remains one of the largest crypto exchanges globally, with strong BTC reserves even after the security breach. CryptoQuant’s insights on X reveal that Bybit’s Bitcoin reserves have decreased by ~2K BTC following the hack. However, the exchange still holds around 68K BTC, maintaining a solid reserve to support user withdrawals and platform operations.
Moreno emphasized that nothing is out of the ordinary, as withdrawals remain within typical exchange activity levels. The market will be closely watching for any additional withdrawals from Bybit, as continued outflows could indicate further panic among investors. However, if Bitcoin maintains stability and demand remains strong, the impact of the Bybit hack may be short-lived.
The next few days will be crucial for Bitcoin and the broader market. If BTC reclaims the $98K and $100K levels, it could confirm that the market has absorbed the shock and is ready to push higher. However, failure to hold above $95K could result in further downside pressure. Investors remain cautious as they await more data on the hack’s long-term effects on exchange confidence and crypto liquidity.
Bitcoin Price Struggles Below $100K
Bitcoin is trading at $95,800 after facing a strong rejection from the $99,500 level, highlighting the difficulty in breaking through the $100K resistance. Despite multiple attempts, BTC has struggled to maintain bullish momentum, failing to hold above the 4-hour 200 exponential moving average (EMA) at $98,100.
This ongoing consolidation suggests indecision in the market, as bulls attempt to reclaim key levels while bears continue to reject upward moves. The $100K mark remains a major psychological barrier, and without strong buying pressure, BTC could remain range-bound or even break lower.
If Bitcoin fails to reclaim the $98K level and push above $100K in the coming weeks, a massive retrace could follow, potentially sending the price toward lower demand levels around $91K–$94K. Conversely, a breakout above $100K would confirm a bullish reversal and could trigger a rally toward all-time highs above $109K.
For now, short-term traders remain cautious, monitoring whether BTC can sustain support above $95K or if another leg down is imminent. The next few days will be crucial in determining whether Bitcoin continues to consolidate or finally breaks out of its current range.
Featured image from Dall-E, chart from TradingView
