#CryptoMarketWatch #BTCPriceAnalysis

Bitcoin's Last Line of Defense Could Prevent Structural Weakness

Bitcoin is currently experiencing one of its most critical tests in months, as its price is trading near a key support level that has repeatedly prevented deeper declines.

However, investor sentiment and market conditions will determine whether Bitcoin can maintain this level or is at risk of entering a prolonged correction phase.

Bitcoin Vulnerable

Bitcoin's supply quotes indicate that the asset has fallen below the 0.95-quota price pattern ($117,100) of spot prices for the third time since late August. This level represents a situation where approximately 5% of the supply is at a loss, held mostly by large buyers. BTC is currently trading within the 0.85–0.95 quote range ($108,400–$117,100), reflecting a significant pullback from the euphoric phase of recent months.
Without renewed momentum to push prices above $117,100, Bitcoin risks sliding towards the lower end of this range. Historically, medium- to long-term corrections have occurred when BTC failed to hold this critical support area. A drop below $108,000 could signal structural weakness and lead to further losses as investor confidence falters.
The broader macro environment remains challenging for Bitcoin. Since July 2025, distribution from long-term holders (LTH) has limited upside potential. Data shows that approximately 0.3 million BTC were sold by mature investors during this period, indicating sustained profit-taking. This persistent selling pressure has limited demand growth and kept volatility high.

If the distribution trend continues without new inflows from institutions or individual investors, Bitcoin could face further price stagnation. Demand exhaustion could lead to localized capitulation events or temporary market pullbacks before long-term equilibrium is achieved.
BTC Price Remains Strong

Bitcoin's price has remained volatile since July 2025 due to macroeconomic pressures and shifting investor sentiment. However, BTC has repeatedly found stability around $110,000, signaling potential resistance.

The next major support level is located at $108,000, a strong level that has been tested repeatedly. Staying above this zone could enable a near-term recovery to $112,500, especially if macro conditions improve.
However, if bearish pressure intensifies and selling accelerates, Bitcoin could drop below $110,000. A break below $108,000 would invalidate the bullish-neutral outlook and expose BTC to deeper structural weaknesses.