Bitcoin Faces 3% Daily Decline: What It Means for the Market Ahead
Bitcoin experienced a notable 3% decline over the past 24 hours, signaling a potential shift in market sentiment. This latest drop has raised concerns among investors, particularly because it coincides with increased selling pressure from long-term holders—a demographic traditionally seen as a stabilizing force in the market. The decline also comes just days before the upcoming Federal Open Market Committee (FOMC) meeting, which has historically influenced crypto market behavior.
At the time of reporting, Bitcoin was hovering near the $110,100 level, representing the realized price for holders who acquired BTC in the past 3-6 months. This price point has now been tested three times within a ten-day window, underlining its significance as a short-term support level. A sustained close below this threshold could indicate a deeper correction ahead.
Long-Term Holders Begin Offloading
Over the past month, long-term holders (LTHs) have liquidated approximately 325,600 BTC. This marks the most aggressive monthly sell-off since July 2025, according to market analyst Maartun. These figures suggest a growing lack of confidence among seasoned investors, who may now be prioritizing profit realization over future gains.
Further compounding the bearish sentiment, around 270,000 BTC that had remained untouched for over seven years were moved in 2025. While some of this activity may be attributed to internal restructuring or security upgrades, a large portion is likely driven by profit-taking motives. As a result, the market has seen a considerable increase in coin movement from the 3-5 year dormant bracket, with 4,700 BTC transferred in the latest wave alone.
Spot Market Activity: A Double-Edged Sword
Despite the negative price action, there’s been an uptick in spot trading volume—an encouraging indicator for some analysts. Darkfost, a contributor to CryptoQuant Insights, noted that higher spot volume reflects a healthier market dynamic, especially following the sharp deleveraging that occurred earlier in October.
Unlike futures-driven rallies, which often suffer from high volatility and liquidation cascades, spot-led momentum tends to be more stable. However, the current market remains range-bound, and heightened spot activity doesn’t necessarily equate to bullish dominance. Investors are advised to interpret this data cautiously, especially in a climate of uncertainty.
Critical Support Levels to Watch
Should Bitcoin close below the $110,000 level by the end of Thursday’s trading session, it would signal a breakdown below a key support. The next significant on-chain support lies at $93,300—this is the realized price for BTC acquired 6–12 months ago. A move toward this level could trigger panic selling and further deteriorate investor morale.
Psychological and Technical Barriers
Bitcoin has managed to stay above the psychological $100,000 mark for 128 consecutive days, a feat that underscores its recent strength. Nonetheless, as profit-taking accelerates among long-term holders, this psychological barrier could come under pressure. If broken, it might shift the narrative from consolidation to correction.
Macro Factors in Play
The upcoming FOMC meeting adds another layer of complexity. Any shift in interest rate policy or signaling from the Federal Reserve could dramatically affect market liquidity and investor appetite for risk assets like Bitcoin. A hawkish stance may further suppress price action, while dovish hints could offer temporary relief.
Implications for Short-Term Traders
For short-term traders, the current environment demands heightened vigilance. Range-bound price action, coupled with high spot volume and long-term holder distribution, creates a complex and volatile trading landscape. Monitoring realized price levels and watching for institutional inflows or outflows could provide better insight into short-term direction.
What Could Reverse the Trend?
A reversal from the current downtrend would likely require a combination of renewed institutional interest, positive macroeconomic developments, and a return of conviction among long-term holders. On-chain metrics such as decreasing exchange inflows, rising accumulation addresses, and declining active supply could signal a potential bottoming formation.
Investor Strategy Going Forward
In light of recent volatility, investors may benefit from a more defensive approach. Diversifying portfolios, employing stop-loss strategies, and maintaining a long-term perspective could help mitigate risks. Those looking for entry points should closely monitor the $93,300 and $100,000 support levels, as bounces from these zones could present opportunities.
Conclusion
Bitcoin’s 3% drop within 24 hours is more than just a short-term dip—it reflects broader shifts in market behavior, sentiment, and macroeconomic influences. With long-term holders offloading assets and critical support levels being tested, the next few days could be pivotal for determining whether Bitcoin continues to consolidate or enters a deeper corrective phase. Investors should stay informed and prepared for heightened volatility in the days ahead.