Bitcoin Price Struggles Near $111K After ETF Recovery – Analysts Warn of Weak Support

The BTC USD price is continuing to struggle, despite the ETF recovery pushing the Bitcoin price back up to $111,000. Now, analysts are warning of weak support.

Bitcoin hovered near $111,000 on Thursday after another round of withdrawals from US spot bitcoin ETFs.  About $100 million flowed out of the funds over the past day, reviving concerns that institutional demand may be losing steam.

According to Coingecko data, Bitcoin fluctuated between $106,800 and $110,300 during the session, with the last trade at $110,700. 

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The narrow range keeps the asset close to the $107,000 zone, which many analysts view as critical short-term support. 

A clear drop below that level could open the door to deeper losses, while a rebound above $112,000 would signal renewed buying strength.

Why Are Spot Bitcoin ETFs Seeing Persistent Withdrawals?

US spot Bitcoin ETFs saw roughly $101.4 million in net outflows in October 2022, marking another weak day for institutional demand.

According to Farside data, BlackRock’s IBIT still posted an estimated $73.6M in inflows, but those gains were erased by heavy withdrawals elsewhere, including about $56.6 million from Fidelity’s FBTC.

(Source: Farside)

The uneven flow highlights how fragile sentiment remains after last week’s deeper redemptions.

Analysts at Bitfinex have warned that the $107,000–$108,000 price range has become shaky, noting that large buyers have largely stayed out during this correction. 

Between October 13 and 17, spot Bitcoin ETFs shed over $1.23 billion, indicating an apparent decline in investor appetite.

On-chain data from CryptoQuant indicates that the 3-6 month UTXO realized price is near $108,300, a key mid-term support area. 

(Source: CryptoQuant)

Glassnode’s data adds that Bitcoin now trades below both the short-term holders’ cost basis ($113,100) and the 0.85 quantile level ($108,600). 

These thresholds have often marked the start of mid-term bearish periods.

Options data points to a more defensive market. Traders are loading up on puts to hedge against more downside, pushing implied volatility higher. 

A Market Hedged in Fear

Bitcoin trading below key cost basis levels signals demand exhaustion. Long-term holders are selling into strength, while rising put demand and higher volatility show a defensive market.

Read the full Week On-Chain below

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