Bitcoin Faces Three Critical Price Floors Amid Heavy Sell-Off

Bitcoin under pressure from renewed sell-off

Bitcoin has entered a period of intensified volatility as strong selling pressure pushes its price below $112,000. This drop comes after days of weakening momentum, with market sentiment shifting towards risk aversion. The decline has been fueled by both spot selling and liquidations in the derivatives market, highlighting that institutional and retail traders alike are trimming exposure.

The three make-or-break support levels

$112,000 – Immediate line of defense

The $112,000 zone is the first level analysts are watching closely. It represents a near-term floor where buyers must step in to prevent deeper losses. Failing to hold this level could accelerate bearish momentum in the short run.

$111,400 – Short-term holder cost basis

The second level, around $111,400, is derived from the average acquisition cost of short-term Bitcoin holders, defined as wallets that purchased BTC in the past 155 days. Historically, this metric has acted as a psychological pivot: if prices dip below it, short-term holders tend to sell more aggressively, fueling additional downside.

$110,000 – Long-term lifeline support

The final and most critical support is at $110,000. This level is considered a lifeline for Bitcoin’s medium-term structure. A decisive break below $110,000 could signal a shift into a broader bearish phase, opening the door to deeper declines and shaking investor confidence across the market.

On-chain and sentiment indicators

Market indicators show heightened stress. Bitcoin’s Risk Index, which combines valuation models with cost basis data, signals instability when BTC trades under $112,000. Rising sell volume and negative funding rates on derivatives platforms further confirm that traders are defensive.

Whale wallet activity is also notable. Large transfers of BTC to exchanges suggest that big players may be preparing to sell, increasing market pressure at these support levels.

Scenarios ahead for Bitcoin

If Bitcoin holds the $112,000 or $111,400 levels, the market could stabilize and attempt a rebound toward the $120,000 zone. Such a recovery would require renewed buying interest and lower sell pressure from institutions.

However, if both supports fail, the $110,000 floor becomes the last line of defense. Losing it could trigger panic selling, with the possibility of BTC sliding into lower ranges not seen in recent months. Traders and investors are urged to watch these levels closely as they will likely define Bitcoin’s trajectory for the coming weeks.

Disclaimer: This article is intended solely to provide information and market insights at the time of publication. We make no promises or guarantees regarding performance, returns, or the absolute accuracy of the data. All investment decisions are the sole responsibility of the reader.