Bitcoin Consolidates Above $100K Amid Profit-Taking

Bitcoin’s current market behavior reflects a delicate balance between distribution and accumulation. According to data from CryptoQuant, the 30-day moving average of daily Bitcoin inflows to Binance has climbed sharply throughout October, reaching approximately 7,500 BTC per day. This marks the highest inflow rate since the March correction, signaling renewed selling pressure as investors secure profits. Analyst Darkfost notes that this trend emerged following the exceptional liquidation event in early October, with many participants scaling back exposure as the current cycle matures.

Despite these substantial inflows indicating profit realization and short-term selling, Bitcoin has demonstrated remarkable resilience by holding steady above $100,000 and consolidating within a tight range between $102,000 and $107,000. This price stability amid significant distribution suggests that buyer demand remains sufficiently strong to absorb the increased supply entering the market. The current phase represents what analysts often describe as a structural reset—a period where the market recalibrates without descending into full capitulation.

Short-term holders (STHs) have emerged as a major contributor to the ongoing selling pressure. These market participants, typically the most reactive to volatility and sentiment shifts, have been sending significant amounts of Bitcoin to exchanges at a loss. With a realized price near $112,000, many STHs have been underwater for approximately a month, prompting them to reduce exposure despite unfavorable conditions. Darkfost explains that this behavior historically coincides with late-stage corrections—what market analysts term a ‘cleansing phase.’

During such phases, speculative capital exits the market while long-term investors quietly absorb the supply, creating conditions for renewed stability and potential future growth. The current dynamic mirrors this pattern, with STHs contributing to distribution while underlying demand from committed holders prevents a deeper price breakdown. If this demand continues to offset short-term selling, Bitcoin could establish a stronger foundation above $100,000, paving the way for gradual recovery as selling pressure diminishes and market confidence returns.

From a technical perspective, Bitcoin continues to demonstrate underlying strength despite the profit-taking activity. On the weekly chart, BTC remains supported by the 50-week moving average, which has acted as a dynamic floor throughout recent price retests. This consistent defense of key support levels indicates that underlying demand remains intact even as profit-taking intensifies. The broader technical structure, as analyzed through TradingView charts, maintains a bullish bias with both the 100-week and 200-week moving averages continuing their upward trajectory.

However, the lack of strong volume during recent rebounds suggests market participants are exercising caution, awaiting confirmation of renewed momentum before committing additional capital. The current consolidation represents a critical juncture that could determine Bitcoin’s near-term direction. A successful reclaim of the $110,000 region would invalidate short-term bearish sentiment and potentially trigger recovery toward the $117,000–$120,000 resistance zone. Conversely, a weekly close below $100,000 would mark a significant technical breakdown, potentially opening the door to deeper retracement toward the $92,000–$95,000 range.