- Bitcoin rejected at $111K–$112K with sellers active, leaving $108K support as the immediate battleground for short-term market direction.
- Buyers defending the $108K–$107K demand zone may spark a rebound attempt, while breakdown risks extend toward the deeper $101K support level.
- Normalized Address Activity fell to 30%, signaling weaker transactions, while annual NAA climbed to 40%, expanding the long-term profit-taking base.
Bitcoin is holding at the $108K demand zone after failing to break through $111K–$112K resistance. The market now faces a key decision point, where either a rebound attempt may occur or a breakdown toward $101K could follow.
Resistance Holds at 111K–112K
Bitcoin’s recent rejection at the $111K–$112K supply zone has set the stage for the current struggle. Crypto Caesar noted that sellers stepped in aggressively at that level, creating long upper wicks on the daily chart.
This repeated rejection shows that bullish momentum is weak. Buyers failed to sustain upward pressure, leaving resistance as a barrier that must be overcome before any recovery can begin. A lack of strength here signals hesitation across the market.
If buyers succeed in holding the $108K base, another challenge at $111K–$112K could unfold. However, if sellers continue dominating, recovery attempts may falter, reinforcing this zone as a ceiling in the near term.
$108K Defense Versus $101K Risk
The $108K–$107K support area has become the central pivot. Candle patterns reveal small lower wicks, showing demand remains active but vulnerable. Crypto Caesar emphasized that this level is critical for short-term direction.
Should buyers hold firmly, Bitcoin could stage a rebound toward the $111K–$112K resistance. A successful push may keep the broader bullish structure intact, giving bulls another opportunity to test higher ground.
On the other hand, if $108K breaks decisively, the next support lies near $101K. That deeper retracement would mark a shift in market sentiment, potentially challenging confidence among participants who expect a stronger continuation.
On-Chain Trends Support the Mid-Stage Phase
Beyond price structure, on-chain data adds further clarity. Axel Adler Jr reported that Normalized Address Activity has dropped to 30%, down from 60% at the $124K peak. This indicates a cooling of short-term transactions.
Meanwhile, the annual NAA has risen from 30% at $80K to 40%, showing more long-term holders are gradually choosing to sell at higher prices. This suggests that distribution is spreading across a broader base.
Compared with the September 2023 peak, where selling activity hit 85% with Bitcoin at $37K, the current phase appears more moderate. Still, it reflects a mid-stage process where buyers face growing resistance from profit-takers.
Bitcoin’s ability to reclaim $111K–$112K depends on the strength of $108K. If defended successfully, another rebound attempt is likely. However, if $108K fails, the path toward $101K becomes the more probable outcome.
