Why $105K Matters More Than You Think

Bitcoin’s latest slide has pushed prices toward $111K, as the market teeters on fragile footing after recent highs.

Amidst this turbulence, BTC wallet cohorts are showing mixed signals, with $105K emerging as the strongest structural support level.

All Eyes on $105K Support Zone

BTC’s recent pullback from its all-time high of $124K has drawn attention to $105K as a potentially decisive level in the ongoing correction, according to the latest analysis shared by CryptoQuant.

Wallet behavior across cohorts pointed to a mixed but telling picture of accumulation and distribution patterns. The smallest holders (0-0.1 BTC) distributed heavily at the peak but quickly returned to accumulation as prices declined. This indicates their tendency to follow rather than shape the market.

Wallets holding 0.1-1 BTC, however, began accumulating at ATH levels and have maintained steady buying. Meanwhile, 1-10 BTC holders stopped distributing around $107K and have been accumulating.

On the other hand, 10-100 BTC wallets shifted from accumulation at $118K into distribution, reflecting a cautious stance by this cohort. The 100-1K BTC cohort appears most crucial as they show a balance of accumulation and distribution around $105K, which means that this level is a structural support zone. Larger wallets, particularly 1K-10K BTC and 10K+ BTC holders, remain in distribution, though selling pressure has noticeably slowed as the correction deepened.

Overall, distribution outweighs accumulation, but the intensity is waning. If Bitcoin revisits $105K, CryptoQuant stated that this level will be tested as a critical “last stronghold.” A breakdown below could spark increased fear and accelerate selling, while strength could mean that the asset is poised for a stronger recovery.

While wallet cohorts reveal cautious accumulation and distribution patterns, the derivatives market has already flushed weak hands through a major long squeeze.

Weak Hands Flushed?

Bitcoin’s plunge has triggered millions in long liquidations, wiping out late buyers who had piled in with excessive leverage. The event, known as a long squeeze, unfolded as forced sell orders cascaded through the derivatives market, which collapsed open interest and dragged Binance’s cumulative net taker volume to -$1 billion.

While the violent move rattled sentiment, it also performed a structural “reset” – overextended positions were flushed, leverage was reduced, and weak hands were shaken out. This cleanup leaves the market leaner and less vulnerable to further forced selling, but experts stated that with open interest reset and speculative froth drained, conditions now resemble a healthier foundation for upside.