Key Takeaways
Why did Bitcoin see increased volatility in the past 24 hours?
The price of Bitcoin dipped by 3% over the past day due to selling from long-term holders and a short pullback before the FOMC meeting.
Why is the $110k support vital?
It was the realized price for the 3-6 month age band, and this realized price was being retested for the third time in ten days.
Over the past 30 days, long-term holders (LTHs) have shed 325,600 Bitcoin [BTC], noted crypto analyst Maartun.
In a post on X (formerly Twitter), the analyst revealed that this was the sharpest monthly drawdown since July 2025.
The selling pressure from long-term holders was not what investors would be hoping for after the liquidation event of the 10th of October.
A recent AMBCrypto report showed that 270k Bitcoin, which had been dormant for 7+ years, had moved in 2025.
This was likely driven mostly by profit-taking activity from LTHs. Some movement was also possible for security purposes or internal reorganizations.
With BTC prices above the $100k psychological level since the 24th of June, a run of 128 days, the profit-taking tendency revealed weakened LTH bullish conviction.
Analyst Maartun observed a flurry of movement from coins dormant for 3-5 years, which was the third such spike in just the past two days. In the most recent uptick, 4.7k BTC were moved.
Will this sustained selling force Bitcoin into a downtrend?
In a CryptoQuant Insights post, analyst Darkfost pointed to the increased spot trading volume as a sign of market health.
After the violent deleveraging earlier in October, an increased spot trading volume was a welcome sign that investors see leverage as risky.
A spot-driven rally would be stronger and less volatile than one that pulls in a lot of speculative interest and high Open Interest.
The build-up of liquidation levels around the price would induce liquidity hunts and higher volatility.
However, given the range-bound price action of Bitcoin, market participants must remember that high spot volume does not automatically equate to buyer dominance.
At the time of writing, Bitcoin was testing the realized price of $110.1k (cyan) for the 3-6 month age band. This was a critical support level, and has already been tested twice before within the past ten days.
A price move below $110k by the Thursday daily session close would be an alarming short-term signal.
The next realized price support (yellow), for investors who bought and held BTC in the past 6–12 months, is at $93.3k. This marked it as an important on-chain support level to watch.