Bitcoin’s $110K Support Test: Over 90% of BTC Supply Still Profitable Despite Market Pressure

Bitcoin faces its ultimate stress test as the $110,000 support level comes under fire.

The Profit Paradox

Here's what makes this moment extraordinary: over 90% of all Bitcoin in circulation remains in profitable territory. That's nearly the entire supply sitting pretty while the market holds its breath.

Market Mechanics at Play

Traders are watching every tick as Bitcoin defends critical ground. The $110,000 level isn't just another number—it's the line separating confidence from concern in today's volatile landscape.

Massive profitability typically creates selling pressure, yet Bitcoin continues demonstrating remarkable resilience. Call it stubborn or call it strong—the market can't decide whether this is the calm before another surge or the pause before a correction.

Meanwhile, traditional finance veterans shake their heads, muttering about 'irrational exuberance' while quietly checking their own portfolios. Some things never change in finance—the experts who dismiss crypto loudest often hold the most.

• Bitcoin’s $110K–$111K zone remains the key support holding up the broader BTC price structure.
• Over $755M in Bitcoin and Ether ETF outflows signal strong short-term market caution.
• Over 90% of Bitcoin supply still profitable, showing a leverage-driven correction, not panic.

Following a week of heavy selling in the cryptocurrency market, which wiped out prior gains, Bitcoin is trading around $111,800 as of October 14. The price is approximately 11% lower than the all-time high of $126,198, which was reached on October 6. 

In the last 30 days, Bitcoin has been ranging between $104,582 and $126,198 with volatility spiking as a result of profit-taking and institutional outflows.

Bitcoin (BTC) price action shows support but weak momentum

The short-term analysis indicates that bitcoin is forming a consolidation around a critical support level of $110,000 and $115,000. This level has served as technical support several times over the past few months, after BTC broke the $110,000 level. According to a chart posted by Crypto Rover, the horizontal band has been tested several times. The analyst also noted, “As long as Bitcoin stays above this support, the setup looks strong.”

As long as Bitcoin stays above this support, the setup looks strong! pic.twitter.com/V2NTdj8SNr

This key zone aligns with earlier commentary from Ted, who identified the same area as a CME gap region and “crucial support.” Ted warned that a sustained break below $110,000 could lead to a liquidity sweep toward $107,000, while a successful hold could trigger a rebound back to $115,000–$119,000.

At the time of writing, the RSI (14) is at 52.06, which falls within the neutral momentum zone, indicating neither overbought nor oversold conditions. However, the buying and selling forces are balanced but slightly leaning towards the downside as the momentum cools down after the highs. 

Meanwhile, the MACD (12, 26, close) indicates a bearish cross, and the MACD line (4,623) is below the signal line (5,608). The histogram ( -968) is negative, indicating decreasing bullish momentum, and the MACD line may soon cross the signal line unless there is an increase in buying pressure.

Crypto ETF outflows top $755M, weakening digital asset sentiment

On Monday, U.S. spot crypto ETFs experienced significant outflows, with combined Bitcoin and Ether products recording over $755 million, indicating wary sentiment following the recent sell-off. Spot Bitcoin ETFs alone registered a total of $326.52 million net outflows.

The withdrawals in Fidelity FBTC totaled $93.28 million, Grayscale GBTC $145.39 million, Bitwise BITB at $115.64 million, and Ark 21Shares ARKB at $21.12 million. BlackRock, however, reversed the trend with IBIT recording $60.36 million in inflows.

Spot Bitcoin ETF inflows continue to be high, at $62.44 billion, with total net assets of $157.18 billion, representing 6.81% of the market capitalization of Bitcoin, despite daily losses. 

Market analysts attribute the pullback to investor caution following $19 billion in crypto liquidations over the weekend. The wave followed an announcement by the U.S. president that the country will impose 100% tariffs on all Chinese imports starting Nov. 1. The statement came in response to new Chinese restrictions on rare earth mineral exports. Traders reduced leverage as cross-asset volatility increased.

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Bitcoin support near $110K holds as traders await signals

According to Vincent Liu, Chief Investment Officer at Kronos Research, investors are awaiting an indication of macroeconomic direction before returning to the market. He further added that fiscal issues in the U.S. or progress in trade talks could lead to a resurgence of ETF flows, regaining investor confidence.

Technically, there are resistance zones between $113,000 and $120,000 that may indicate recovery. Meanwhile, there is key support at $110,000 and secondary support at $107,000-$105,000. A daily close above $115,000 may confirm a short-term recovery to $120,000, while a breakdown below $110,000 may reveal the next liquidity point.

Glassnode also notes that more than 90% of the Bitcoin supply remains in profit, despite the recent sell-off, and the decline was not a widespread capitulation event, but rather a leverage event.

Top buyers suffered the most losses, unlike in the previous crashes, such as FTX and Luna, where less than 65% of the supply was profitable. This indicates that this was a correction due to liquidations rather than panic selling, which reflects the strength of the market and structure before a possible recovery.

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