Amid Bitcoin’s accelerating price decline, experts have pinpointed three crucial support levels. At the start of the week, Bitcoin 
$77,710 fell by 2.5%, dropping to $111,717. Analysts indicate the levels of $112,000, $111,400, and $110,000 will be decisive for the short-term outlook.
$112,000 and $110,000 Supports
Swissblock Technologies, a Swiss-based company, identified $112,000 as the first significant support level. According to their analysis, as long as this level holds, there is a possibility of market recovery. Despite the selling pressure, the Bitcoin Risk Index calculated by Swissblock remains low, indicating sustained optimism in the markets. This index measures risk perception by combining blockchain cost and valuation data.
Swissblock also highlights $110,000 as another critical level. Historically, this threshold posed a challenge for investors during the December-January period. Analysts suggest that maintaining this level could encourage buyers to re-enter the market. However, a significant breach could pave the way for deeper selling.
Short-Term Investor Cost Basis
The third critical support level for Bitcoin is $111,400. Glassnode data indicates this level reflects the average cost of Bitcoin acquired by investors over the last 155 days. Analysts note that staying above $111,400 shows buyers’ strength in the market. Conversely, a sustained drop below this level might intensify selling pressure.
Glassnode’s report emphasizes that prices lingering below this average could signal weakness in the medium to long term. Consequently, both individual and institutional investors closely monitor the $111,400 level for short-term directional cues. The support band between $110,000 and $112,000 stands out as a crucial threshold for the market.
