- Bitcoin drops $4,000 as traders watch crucial $112K support.
- Uptober optimism fuels hopes for a rebound toward $150,000.
- Institutional inflows hit $3.5B, strengthening long-term market confidence.
Bitcoin has fallen by nearly $4,000 after hitting a new all-time high of $126,198.07 on Oct. 6. The 3% drop has sparked concern among traders, with focus shifting to the $112,200 support level that could define the market’s next direction.
According to CryptoQuant, $112,200 represents the short-term average cost for most new buyers. A dip below this price could cause panic selling, as many investors would seek to avoid losses. Such movement could intensify downward pressure, leading to a potential short-term correction.
Currently, Bitcoin is trading between $121,000 and $122,000, indicating consolidation amid uncertainty. Market activity has also slowed sharply as trading volume plunged by 20.36% in the past two hours to $62.39 billion, suggesting weaker momentum and reduced participation.
At the time of writing, Bitcoin stands at $121,092, marking a 1.25% decline within the same timeframe. Earlier, the asset reached $124,167 before retracing. Analysts emphasize that maintaining support above $112,200 is vital. If the level breaks, the next notable support sits near $103,000, where millions of holders previously entered the market.
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Investors Eye Key Levels as Market Volatility Grows
Market observers are keeping a close watch on price action near the current range. A decisive move below $112,200 could shift market sentiment from bullish to cautious. Data shows that if this support fails, the next potential cushion lies between $89,700 and $103,000. Around six to twelve million holders reportedly accumulated Bitcoin in that zone, providing a broad base of potential demand.
This volatility highlights the growing tension between short-term traders and long-term holders. Many long-term investors continue to hold firm, betting that broader optimism will outweigh temporary declines.
Institutional Demand and Uptober Momentum Remain Strong
Despite recent fluctuations, investor optimism remains high. The ongoing “Uptober” trend continues to fuel expectations of a strong rally toward $150,000 before the year ends. Moreover, institutional demand is strengthening. Bitcoin exchange-traded funds have recorded roughly $3.5 billion in weekly inflows, reflecting growing confidence in the asset’s long-term potential.
Even with the pullback, Bitcoin’s overall outlook stays positive. However, sustaining the $112,200 support will be key to preventing panic selling and maintaining market stability in the coming days.
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