[Analysis] "Bitcoin momentum weakens… $111,000 is the key support"

Recent analysis suggested that Bitcoin (BTC) upward momentum is weakening.

On-chain analytics firm Glassnode said in its weekly report on the 25th (local time) that "Bitcoin entered a corrective phase after the rally led by the Federal Open Market Committee (FOMC) in September," adding that "the overall market structure indicates a gradual weakening of momentum."

Glassnode emphasized the 'Realized Cap' metric. Glassnode said "the current 8% drawdown on-chain is modest compared to past cycles," and analyzed that "(it) occurred after three large capital inflows that pushed the realized cap up to 678 billion dollars." It added, "this is nearly double that of the previous cycle," and said, "long-term holders have already realized gains on 3.4 million bitcoins, showing the high dispersion and maturity stage of this rally."

It identified the $111,000 range as the key support level. Glassnode said, "ETF inflows, which played a key role in absorbing supply, have sharply slowed around the FOMC," and "at the same time, selling by long-term holders has accelerated, creating an unstable balance in capital flows." It went on, "the $111,000 reference price for short-term holders is the key support," adding, "if demand from institutions and holders does not realign, there is a risk of a more severe market cooling."