Bitcoin is experiencing renewed selling pressure, with the price currently testing the critical $110,000 support level. Analyst Axel Adler notes that centralized exchange (CEX) flows have cooled significantly, with gross activity dropping from a peak of 266,000 BTC in March 2024 to just 70,000 BTC currently. This suggests a market shift into HODL mode, where reduced speculative activity could limit downside risks and foster accumulation.
However, Glassnode's on-chain data reveals underlying concerns. Bitcoin has declined 10.5% from its all-time high of $124,000, and long-term holders have distributed 3.4 million BTC in profits, exceeding previous cycles. US Bitcoin ETF inflows collapsed around the Federal Reserve's decision, while derivatives markets saw open interest fall from $44.8 billion to $42.7 billion, amplifying volatility. The short-term holder cost basis at $111,800 now serves as a key technical support.
Technical analysis shows BTC facing resistance near $118,000, with moving averages indicating mixed momentum. A break below $110,000 could trigger deeper corrections toward $105,000, but holding above this level may signal bullish continuation once selling pressure eases.