BTC Holds steady at $110K Despite Strong Demand in the US

The key takeaways

• US Spot Demand on Coinbase Keeps Bitcoin Anchored Above $110,000

• 7,300 dormant BTC moved, hinting at profit-taking.

• Derivatives wallets mobilized 364,000 BTC, signaling looming volatility.

BitcoinBTCIts price remained above $110,000 due to strong demand for spot from US-based buyers. The Coinbase Premium IndexThe price difference between BTC and other global exchanges on Coinbase has been a positive indicator during recent sell-offs. 

The index reached 0.18 on October 10, its highest level since March 2024. This indicates that large bids between $110,000 to $100,000 were filled despite market panic. A positive premium usually indicates sustained US interest in buying, which reinforces near-term markets’ resilience.

CryptoQuant data onchain is used to support this story. highlighted Rapid accumulation is occurring amongst short-term investors (STHs), namely wallets that have held BTC under one month. STH supply soared in days after the correction from 1.6m BTC to more than 1.87m BTC. 

However, older coins There is a possibility of friction short-term as the coins have started moving. Around 7,343 BTC that were aged between 2 and 3 years old have moved back onto the blockchain this week. This could be a sign of long-term holders realizing gains or repositioning. 

The crypto analyst MaartunnBinance’s Net Taker Volume (NTV) indicated persistent sales pressure while the Short-Term Holder Spent Output profit Ratio, which measures if recent spenders sell at a loss or gain, remains under 1.

It was evident that STHs are still actively taking profits. This dynamic has temporarily dampened the momentum of a credible recovery despite strong accumulation by other participants. 

Related: DOGE holders are buying dips: Is $1.60 by 2026 realistic?

364,000 “mobilized” BTC signals conflicting scenarios

CryptoQuant data is available. painted Bitcoin has a double narrative, one that is characterized by steady accumulation and the other by looming volatility. The 30-day Netflow moving average (SMA), which signals a long-term investor confidence, shows an outflow of historic proportions (5,620 BTC). However, a different trend in derivatives is emerging.

Between October 9 and 14, approximately 364,000 BTC were mobilized in the internal wallets of derivatives exchanges. This was mainly Bitfinex (210 000 BTC), Binance (37,000 BTC) and Bybit (108,000 BTC). This is a result of traders preparing to take on leveraged positions by loading margin accounts up with capital.

The clash of a tightening demand base with soaring derivatives activity is what sets up increased volatility. Although the macro trend is bullish, BTC’s near-term configuration suggests that an inflection has been approaching.

Related: Bitcoin’s ‘Uptober’ vibes hinge on Fed rate cut odds, Nasdaq and tech stocks’ response

This article contains no investment recommendations or advice. Risk is inherent in every investment decision and trade. The reader should always do research prior to making a final decision.