Bitcoin Price Drops After Rejection at $110K Amid Unusual On-Chain Activity

Bitcoin’s price is drifting lower today, trading just above $107,400 at the time of writing after declining by 2.4%. The coin had after briefly touched $110,000 earlier in the session, and the drop reduces the prospect of retesting the all-time high price of $112k during the weekend. However, that decline was not driven by panic or a collapse in demand. Instead, it reflects a mix of evolving fundamentals and carries with it some jitters sparked by unusual on-chain activity.

In one such developments two massive Bitcoin wallets, each dormant since 2011 moved over $2 billion worth of BTC. Although the coins haven’t been sold, movements from such long-silent addresses often make markets nervous. That is already raising questions about potential offloading and unseen whale dynamics. That said, it’s more of a shakeup of the coin’s market sentiment than a threat to its core fundamentals.

Despite the recent pressures, institutional demand for Bitcoin is strong, with Bitcoin spot ETFs reporting $601.8 million worth of net inflows on Thursday. That was the largest such inflow since late May, affirming the view that Bitcoin price retains a bullish undercurrent. A continuation of the same will likely see it flip the $110k mark from a resistance to a support level in the coming days.

Bitcoin Price Prediction

Bitcoin price pivots at $108,320 and resistance at that level will signal control by the sellers. I that case, the coin will likely find the first support at $107,320. Breaking below that level will signal a stronger momentum that could extend losses and test $106,310.

Conversely, breaking above $108,320 will shift the momentum to the upside. With the buyers in control, primary resistance will likely be at $109,080. The downside narrative will be invalid if action goes below that level. In addition, an extended control by the buyers could push the price higher and test $109,920.

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