Bitcoin Faces Key Support Levels as Sell-Off Intensifies

Analysts are keeping a close eye on three critical Bitcoin [BTC] support levels as the cryptocurrency’s recent sell-off accelerates, with these zones likely to influence its near-term trajectory.

The first level, $112,000, was highlighted by Swissblock Technologies. “As long as $112,000 holds and the Risk remains stable, BTC can rebuild strength,” the firm noted on X. Swissblock’s proprietary Bitcoin Risk Index, which tracks on-chain valuations and cost-basis data, helps gauge market volatility. Rising readings suggest risk aversion and potential price swings, while stable or low levels indicate bullish sentiment. On Monday, the index hovered near zero, signaling optimism despite BTC’s 1.7% drop to $112,600 in the past 24 hours, with intraday lows reaching $111,717, according to CoinDesk data.

Swissblock also identified $110,000 as a “lifeline support,” noting that historical charts show buyers struggled to keep BTC above this level during the December-January period.

The third key support comes from the on-chain metric “short-term holder cost basis,” currently at $111,400. Analytics firm Glassnode defines this as the average purchase price for wallets acquiring bitcoin within the past 155 days. It is widely viewed as a battleground between bulls and bears: prices above it generally indicate bullish conviction, while sustained trading below it could signal increased risk of sell-offs or a shift to a bearish market structure. “Sustained trading below this level could indicate a move toward a mid- to long-term bearish market trend,” Glassnode explained on X.

Together, these three levels—$110,000, $111,400, and $112,000—form a delicate support zone that traders are watching closely as Bitcoin navigates a volatile market phase.