Bitcoin Retreats from $112K, Finds Support at $107.8K
Bitcoin price dropped below the $112K cost basis for short-term holders, signaling a bearish shift as realized profits near $4 billion and Coin Days Destroyed spikes indicate exit pressure. The average short-term holder cost basis around $107.8K now offers critical Bitcoin support, with traders eyeing the MVRV Percentile at a neutral 39% and STH SOPR resets. This strong Bitcoin support level between $107.8K and $110K defines the near-term trading zone. A sustained close below these levels for 2–3 days could invalidate long setups. Risk remains as capital rotates to Ethereum, suggesting potential altcoin momentum in Q4. Traders should monitor on-chain metrics—including MVRV, short-term realized prices, and exchange outflows—before initiating new positions.
Bearish
The news highlights short-term bearish signals as Bitcoin failed to hold the $112K cost basis and realized profits approached $4 billion, echoing past mid-cycle corrections where similar on-chain indicators preceded price pullbacks. The spike in Coin Days Destroyed and rotation of capital toward Ethereum further amplify exit pressure, suggesting reduced buying momentum. Although $107.8K offers short-term support, the risk of a break below key short-term holder bands in the coming days could trigger deeper declines, reinforcing a cautious trading stance. Consequently, the immediate impact is bearish, while the support level may cap losses for now.