• Bitcoin is trading around $110,176 as debate arises over whether the fall is the start of a correction phase or a natural cooling.
• Resistance around 114K and support around 106K -105,000 would provide the way to proceed toward a potential 117K target.
• Long-term holder sold 97,000 BTC during a single day, with the majority of the total selling volume committed by 3 cohorts.

Bitcoin has dropped to its lowest position since July 9, and because of that, it creates discussions about whether the current market cycle is robust or not. The concatenation by some investors believe that the concatenation signals the commencement of a more corrective swing, while the view that the move is a natural cooling of several good months of straight gains. 

Analyst Josh noted that the general momentum of its Bitcoin has not been translating to a rise in purchasing power over the last several weeks. The coin is trading around $110,176. The next big supports are $106,000 to $105,000, and when broken, would bring to the fore the further major supports.

Bitcoin Struggles at Key Resistance

The initial resistance at $112,000, $113,000, and $114.000. It is probable that a solid breakout past the $114,800 would make that zone supportable and would leave a possible way to break to the $117,000-level. 

Also Read: Bitcoin Price Drops 14% After Record High – Is It Just a Healthy Correction?

The technical indicators are showing ongoing risk. The MACD histogram of Bitcoin shows negative numbers ,indicating the existence of downward forces. It is a volatile price trend, as neither bulls nor bears have managed to achieve a sustained grip. 

Source: TradingView

Josh underlined that the given retreat needed to be perceived as a correction of the macro uptrend. He claimed that the structure of the bull market remains intact as long as Bitcoin safeguards the region to the tune of $105,000. In such a situation, the depreciation would no longer seem a slump, but rather a healthy correction leading to subsequent profits.

The expectations of the near term are being determined by liquidity dynamics. Data has indicated that liquidation clusters traded between $114,000 and $116,000, which may attract Bitcoin in the same direction before a higher selling force kicks in. Even a few intraday charts have hinted at a bullish divergence and argued in favor of a short-term bounce amid the existing weakness.

Source: Coinglass

Long-Term Holders Drive Record Bitcoin Moves

There has also been activity in long-term holders, according to Glassnode. This segment has grown its expenditure, and the 14-day moving average is rising. Regardless, the activity is at normal cycle ranges and nowhere near the extreme spikes experienced at the end of 2024. 

Long-term holders spent almost 97,000 BTC in the highest one-day transaction of the year. Three groups were the largest contributors to the volume. The possessor of one to two years coins sold approximately 34,500 BTC to 12-month coins sold approximately 16,600 BTC. The three-to-five-year cohort provided another 16,000 BTC.

All three groups comprised in the neighborhood of 70% of all long-term holder sales. Analysts specified that this focalization indicates that selling pressure was saturated, involving some pattern of cohorts or groupings within the market. Such behavior is consistent with past corrections when certain age groups will have been more dynamic in taking gains, as others remained stable.

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