|
Getting your Trinity Audio player ready...
|
- Analysts warn $110,000 is Bitcoin’s lifeline support, with a breakdown risking a fall to $105K.
- On-chain data shows a bearish taker-buy-sell ratio and declining network activity.
- Positive ETF flows and Coinbase Premium offer bullish counter-support if $110K holds.
Bitcoin’s price is hovering at a critical level, with analysts warning that a breakdown below $110,000 could trigger a deeper correction. After modest gains of 0.9% on Wednesday, BTC is trading near $111,000, but on-chain data and sentiment indicators point to potential downside pressure.
Analysts Eye $110K as “Lifeline Support”
Private wealth manager Swissblock described $110,000 as Bitcoin’s “lifeline support,” warning that bulls must defend this level to prevent a shift into structural weakness. Popular trader AlphaBTC noted that the $110,000–$112,000 zone remains the key battleground, requiring a four-hour close above $112,000 for a rebound. Without such a move, the analyst cautioned that BTC could fall toward $105,000.
Trader Crypto Storm echoed the sentiment, saying: “As long as this zone holds, a rebound toward the highs is still possible.”
On-Chain Data Points to Bearish Sentiment
Several key indicators suggest growing bearish momentum. The Taker-Buy-Sell-Ratio currently stands at -0.945, signaling that sell orders are outpacing buys. According to CryptoQuant analyst Gaah, such levels were last seen in November 2021, when Bitcoin peaked at $69,000 before entering a prolonged downturn.
“This signals that, despite Bitcoin’s recent appreciation, the market is showing pessimism and caution,” Gaah noted.
At the same time, network activity is declining, with Glassnode reporting a 13% drop in monthly average transfer volume, from $26.7 billion to $23.2 billion. A break below the yearly average of $21.6 billion would further confirm weakening demand, reinforcing the bearish outlook.
ETF Flows Offer a Bullish Counterweight
Not all signals are negative. A positive Coinbase Premium and renewed inflows into spot Bitcoin ETFs suggest institutional demand is holding steady, providing a potential foundation for a rebound if $110,000 holds.
With Bitcoin down 11% from its all-time high of $124,500, the market faces a decisive test. If $110,000 support breaks, analysts warn of a move toward $105,000. But if bulls can defend this level, the combination of ETF inflows and institutional interest could reignite Bitcoin’s momentum. For now, $110,000 remains the make-or-break line for BTC.
Also Read: IOTA Bitcoin (iBTC) Surfaces on Rebased—Is Wrapped BTC Coming to IOTA?
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
