Bitcoin Fees Fall to 2011 Lows, Price Eyes $111K Support
Bitcoin transaction fees (14-day SMA) on-chain data from Glassnode have dropped to 3.5 BTC, a level last seen in late 2011. This sharp decline in fees signals weakening demand and may foreshadow further downward pressure on Bitcoin’s price. Technical indicators show BTC failing to hold above its 50-day EMA, a bearish sign suggesting sellers outweigh buyers. The next critical support lies at the 100-day EMA, around $111,000–$112,000. A breakdown below this zone could intensify the correction and drag altcoin markets lower. Meanwhile, the RSI is trending downward, reinforcing the negative momentum. Traders should watch for a decisive move at $111K: a rebound could restore confidence, while a breach may trigger a deeper corrective phase. Keep an eye on trading volume for confirmation of buyer or seller dominance. For now, Bitcoin remains at a pivotal juncture, and market participants must monitor these on-chain metrics and moving averages to gauge the next trend.
Bearish
Bitcoin’s falling transaction fees to multi-year lows and inability to sustain above the 50-day EMA indicate diminishing demand and growing sell-side pressure. Historically, when fees and moving averages align to show bearish momentum, Bitcoin often enters deeper corrections, as seen in past drawdowns in 2018 and 2022. The 100-day EMA at roughly $111,000 represents a critical support level; a clear break below could trigger cascading sell orders and wider altcoin sell-offs. The declining RSI and shrinking buyer volume further underscore the risk of extended downside. In the short term, traders may witness continued price weakness, while a sustained breach may signal a longer-term bearish phase. Only a strong rebound above the 50-day EMA, backed by increased volume, would negate the current bearish setup.