Analysts Identify Key Bitcoin Support Levels Amid Recent Sell-Off

Bitcoin's recent sell-off has brought attention to three critical support levels that may influence its short-term direction:

$112,000 Level: Identified by Swissblock Technologies as a key support. They noted that maintaining this level with stable risk could help Bitcoin regain strength.
$110,000 Lifeline Support: Historically significant, especially during the December-January period when buyers found it challenging to keep prices above this level.
Short-term Holder Cost Basis at $111,400: According to Glassnode, this represents the average purchase price for wallets acquiring Bitcoin within the last 155 days. It's seen as a battleground between bulls and bears, where trading below might indicate a bearish market shift.

The Bitcoin Risk Index from Swissblock shows near-zero risk, suggesting optimism despite a recent 1.7% price drop to $112,600, with lows reaching $111,717. These support levels are crucial for traders as Bitcoin faces ongoing volatility.