Bitcoin Sell-Off Tests Critical $110K–$112K Support Zone

Bitcoin (BTC) is facing intense pressure as its recent sell-off accelerates, with analysts pointing to three critical support levels that could dictate the cryptocurrency’s near-term direction.

The first key level is $112,000, identified by Swissblock Technologies. The firm noted that as long as this level holds and its proprietary Bitcoin Risk Index remains stable, BTC could regain momentum. The index, which tracks on-chain valuation and cost-basis data to measure volatility, hovered near zero on Monday—indicating market optimism despite a 1.7% drop that pushed BTC to $112,600, with intraday lows of $111,717.

Swissblock also emphasized $110,000 as a “lifeline support.” Historical data shows that during the December–January period, buyers struggled to defend this level, making it a crucial point for traders to monitor.

Another significant threshold is the short-term holder cost basis, currently at $111,400. According to Glassnode, this metric represents the average purchase price of wallets that acquired bitcoin within the past 155 days. It is widely considered a battleground between bullish and bearish sentiment. Trading above this level typically signals strong conviction among buyers, while extended moves below it may indicate weakening momentum and rising risk of further declines.

Glassnode warned that if BTC remains under this threshold, it could mark the beginning of a mid- to long-term bearish trend. Together, the $110,000, $111,400, and $112,000 levels form a narrow but critical support zone that market participants are watching closely.

With bitcoin currently hovering just above these levels, its ability to defend this zone may determine whether the market stabilizes or shifts toward a deeper correction in the weeks ahead.