Will Bitcoin's Value Above $110K Persist Amidst Market Turbulence?

Key Highlights:

Robust US spot demand for Bitcoin keeps its price stable above $110,000.
Approximately 7,300 previously dormant BTC were moved, indicating potential profit-taking.
A significant movement of 364,000 BTC in derivatives wallets suggests upcoming market volatility.

Bitcoin (BTC) has secured its position above $110,000, boosted by considerable interest from US investors. The Coinbase Premium Index, which measures price variances between Coinbase and other global exchanges, has remained significantly positive amid a recent sell-off.

On October 10, this index hit 0.18, the highest level since March 2024, indicating substantial buying activity in the range of $110,000 to $100,000, despite market anxieties. A positive premium usually represents steadfast interest from US buyers, highlighting short-term market strength.

Visual representation: Bitcoin Coinbase Premium Index Source: CryptoQuant

Data from CryptoQuant also reflects a rapid accumulation by short-term holders (STHs) — wallets holding BTC for less than a month. Following recent corrections, STH supply jumped from 1.6 million BTC to over 1.87 million in just days, showcasing an aggressive buying trend.

Nevertheless, moving older coins has raised short-term market complexity. Around 7,343 BTC, aged two to three years, were reactivated this week, suggesting some long-term holders might be taking profits or shifting strategies.

Visual representation: Bitcoin Spent Output Age Bands Source: CryptoQuant

According to crypto analyst Maartunn, Binance’s net taker volume indicates sustained selling pressures. Furthermore, the Spent Output Profit Ratio (STH-SOPR), which assesses whether recent sellers gain or lose, remains under 1, suggesting ongoing profit-taking among STHs has temporarily hindered genuine recovery momentum, despite strong accumulation from other players.

364,000 BTC Movements Signal Mixed Scenarios

Recent insights from CryptoQuant reveal a dual narrative for Bitcoin—steady accumulation is juxtaposed against potential short-term volatility. The 30-day Netflow simple moving average (SMA) indicates a historical outflow of 5,620 BTC, suggesting long-term holder faith alongside a declining exchange supply, while opposite trends appear in derivatives.

Visual representation: Bitcoin exchange in-house flow Source: CryptoQuant

From October 9 to 14, approximately 364,000 BTC were mobilized within internal wallets of derivatives exchanges like Bitfinex (210,000 BTC), Bybit (108,000 BTC), and Binance (37,000 BTC). This activity indicates traders are preparing to engage with significant leveraged positions.

This clash between tightening supply and rising derivatives activity likely sets up increased volatility. While the overarching market trend is bullish, the short-term outlook indicates an imminent pivotal moment for BTC.

This article is not intended as investment advice. All financial decisions carry risks, and readers are urged to conduct their own research.