Bitcoin News Today: Bitcoin Falls Below $115,724 Support Amid Sustained Off-Exchange Buying

Bitcoin has recently dropped below the critical $115,724 support level, raising concerns about a potential deeper correction. Following a period of consolidation between $115,000 and $122,000, BTC broke down sharply, hitting lows near $112,000. The move has shaken market sentiment, with some analysts cautioning that further declines could follow if selling pressure isn’t absorbed by demand [1].

Despite the price weakness, the fundamental dynamics of the spot market suggest sustained accumulation is ongoing. According to analyst Axel Adler, since late February 2024, the average netflow of Bitcoin from centralized exchanges has been predominantly negative. Only two days in that period showed positive netflows, indicating that demand has consistently outpaced supply. This outflow reflects strong investor intent to hold Bitcoin for the long term, rather than sell into the market [1].

Adler also notes that this pattern of sustained buying off exchanges has persisted for nearly 18 months, significantly reducing the available liquidity in the spot market. As a result, the supply of Bitcoin available for trading has dwindled, contributing to the asset’s overall price appreciation. The dwindling liquidity means even moderate demand can lead to larger-than-usual price swings, further fueling Bitcoin’s upward momentum [1].

However, the growing imbalance between dwindling supply and rising profit-taking activity has started to create friction. As Bitcoin approaches historically overvalued levels, short-term holders and traders are increasingly active, especially around key psychological price points. This increased selling pressure could result in heightened volatility in the near term [1].

On the technical side, Bitcoin is currently consolidating around $114,937, having lost the $115,724 support level. The price is now attempting to retest this level as resistance, but a rejection from the 50-day moving average near $115,100 suggests buyers are struggling to regain control. A breakdown from the consolidation range—marked by a lower high formation—indicates weakening bullish momentum. If Bitcoin fails to reclaim the $115,724 level, the next key support lies at the 100-day moving average near $108,100 [1].

On the upside, a strong breakout above $115,724 with increased volume could signal renewed buying interest and potentially push the price back toward the $120,000–$122,000 range. Failure to break above this level, however, might confirm a bearish shift and increase the likelihood of a retest of the $112,000–$110,000 support range in the coming sessions [1].

Source: [1] Bitcoin Spot Market Dries Up: Relentless Buying Off Exchanges Powers Growth (https://bitcoinist.com/bitcoin-spot-market-dries-up-buying-off-exchanges/)