As bitcoin’s [BTC] recent sell-off accelerates, analysts are focusing on three critical price support levels that could shape the cryptocurrency’s near-term trajectory.
The first key level is $112,000, identified by Swissblock Technologies. “As long as $112,000 holds and the Risk stays stable, BTC can rebuild strength,” Swissblock noted on X.
The firm’s proprietary Bitcoin Risk Index aggregates on-chain valuation and cost-basis data to gauge market volatility—rising readings indicate risk aversion and potential price swings, while low or stable levels suggest bullish sentiment.
On Monday, the risk index hovered near zero, signaling optimism despite BTC’s 1.7% drop to $112,600 in the past 24 hours, with prices briefly dipping as low as $111,717, according to CoinDesk data.
Swissblock also highlighted $110,000 as a “lifeline support.” Historical charts reveal that in the December-January period, buyers struggled to hold BTC above this level, marking it as a significant zone to monitor.
The third crucial support is the on-chain metric known as the “short-term holder cost basis,” currently at $111,400.
Analytics firm Glassnode defines this as the average purchase price for wallets that have acquired bitcoin within the last 155 days. This indicator is widely regarded as a battleground between bulls and bears—prices above it generally reflect bullish conviction. In contrast, sustained trading below it could signal increased risk of sell-offs or a shift toward a bearish market structure.
“Sustained trading below this level could signal a shift toward a mid- to long-term bearish market structure,” Glassnode explained on X.
Together, these three levels – $110,000, $111,400, and $112,000 – form a delicate support zone that traders are closely watching as bitcoin navigates this volatile phase.