Bitcoin demand has returned to levels not seen in four months, offering fresh hope to traders who believe a sustained rally could materialize if key resistance levels fall. At press time, Bitcoin is trading at $105,086, with market participants eyeing the $110,000 threshold as a critical marker for renewed momentum.
Capriole Investment’s Bitcoin Apparent Demand metric registered 5,251 BTC on November 11, its highest point since July 31. This indicator tracks production by mining issuance and is calculated by deducting long-term holder inventory that has been inactive for more than twelve months. The metric provides insight into real-time market dynamics by showing the ratio between new supply and dormant coins.
The turnaround is a notable contrast to recent trends. The apparent demand was negative since October 8, reaching a low of -3,930 BTC on October 21. The sharp reversal suggests accumulation has resumed among market participants.
Trading Volume Points to Renewed Interest
Spot trading activity has increased by 23% over the last week, reaching $14.1 billion compared to $11.5 billion in the previous week. The rise shows a heightened level of speculation and confidence among investors.
Glassnode, in its Weekly Market Impulse report, described the recent spike in Bitcoin to $106,000 as indicative of the reintegration of buyers into the market. The blockchain analytics company observed that high volumes of spot are usually a sign of increased investor engagement and provide an environment conducive to breakout movements.
Bitcoin spot volume, Source: Glassnode
Several macroeconomic variables are driving the demand for risk assets. The end of the US government shutdown has removed one source of uncertainty from markets. President Trump’s announcement of $2,000 tariff dividend payments has added to positive sentiment. The projected record of a Federal Reserve rate cut in December, coupled with a projected quantitative easing mechanism, has prompted investors to take on more risk by increasing their investment in high-risk ventures.
Critical Price Levels Define Next Move
Bitcoin ended the week above the 50-week simple moving average, a technical move considered bullish by analysts. The next phase of price action will depend on whether buyers can establish $110,000 as a new support floor.
In recent market commentary, Swissblock, a private wealth manager, highlighted that the 108,000-110,000 range was important. The firm stated that Bitcoin has successfully defended critical support zones and now faces a period of consolidation. When the bulls regain the $108,000 to $110,000 pivot point, momentum is likely to be regained.
Bitcoin Price momentum, Source: Swissblock
The wealth manager further concluded that selling pressure has decreased, and there are early signs that a bullish reversal is underway. The macro structure of Bitcoin remains intact, which is a reason to expect an increase in value.
MN Capital founder Michael van de Poppe estimated that a break above $110,000 would take Bitcoin to its all-time high of $126,000. The analyst considers this resistance level as the gateway to a more substantial rally.
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Jelle, another market observer, emphasized the importance of reclaiming $110,000 as support rather than resistance. Failure to hold above this level would indicate continued weakness and could trigger further downside pressure.
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Source: https://coinpaper.com/12254/bitcoin-s-next-move-could-trigger-a-rally-to-126-k-analyst