Bitcoin has faced renewed volatility after dipping under critical thresholds, raising concerns that the world’s largest cryptocurrency could slide into a bear market structure.
Data from the Short-Term Holder (STH) Cost Basis Model highlights $111,400 as Bitcoin’s key vulnerability point. Analysts warn that a decisive break below this level would confirm bearish momentum, triggering deeper drawdowns and extending losses across the broader crypto market.
As of now, BTC is trading around $112,960, holding slightly above the $112,500 support level. Within the last 24 hours, the asset fell as low as $111,478, underscoring the fragile state of current support zones.
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Sentiment divergence
Despite the pressure, social data shows “buy the dip” mentions hitting a 25-day high, signaling strong optimism among retail traders. Historically, however, Bitcoin tends to move against crowd expectations when optimism peaks, suggesting further downside remains possible before meaningful recovery.
“If BTC can hold above $112,500 and reclaim $115,000, the bullish thesis stays intact,” one analyst noted. “But if selling accelerates below $111,400, we’re looking at a clear confirmation of bearish momentum.”
Outlook
Bitcoin’s near-term fate hinges on whether it can defend the $112,500 support. A bounce could pave the way toward $115,000 and delay a bear market structure, but a breakdown risks pushing BTC toward $110,000 and beyond.
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