Bitcoin slips below $112K – Will $110K support hold or is more pain ahead?

Renewed Downside Pressure

After flirting with $115,000 resistance earlier this week, Bitcoin’s price momentum reversed sharply. The flagship cryptocurrency dropped through the $112,000 level on growing sell orders from short-term holders and a lack of fresh inflows into major spot ETFs. Market participants note that the best bid has thinned out around $113,000, opening the door for a deeper pullback.

ETF Flow Dynamics

Institutional fund flow data shows a noticeable ebb in daily creations for leading Bitcoin spot ETFs, with outflows resurfacing after a brief pause. Traders argue that this shift in supply-demand balance is straining price support above $112,000. While several funds still maintain net positive subscriptions for the month, the sudden drying of “bid backstops” has traders bracing for possible stops below $110,000.

Technical Snapshot

• Support at $110,000: a zone tested three times in the past fortnight.
• Immediate resistance near $113,500–$114,000, where liquidity clusters from institutional limit orders.
• Relative Strength Index (RSI) tipping below neutral 50 suggests bearish control for now.
• Short-term moving averages are converging above price, indicating sellers maintain upper hand.

Trader Strategies and Positioning

Open interest in Bitcoin futures has dipped marginally, signaling some deleveraging by momentum traders. Options skew remains slightly put-biased, with traders pushing for protective downside collars around current levels. A handful of hedge funds are reportedly layering in small spot buys near $111,000, anticipating a relief bounce, while others are hedging with out-of-the-money puts in the $108,000–$110,000 range.

Bottom Line

Bitcoin’s near-term fate hangs in the balance of the $110,000 level. A decisive break could usher in heightened volatility and deeper corrections toward $105,000. Conversely, a resilient defence here may attract renewed ETF and whale buying, setting the stage for a retest of $114,000 to $115,000 resistance zones.