Will Bitcoin Bounce Back Following $5.6Bn Miner Dump? Analysts Evaluate $110K Support and 2020-Like Bottom
On Thursday, the digital currency crypto market continued to decline, with Bitcoin’s price briefly dipping below $110,000 before managing to recover some losses.
According to CoinGecko data, the Bitcoin price fell from $110,400 to $107,500, indicating a decrease of 3% over the last 24 hours.
Most major altcoins followed suit, with nine out of the top ten non-stablecoin assets experiencing losses ranging from -0.9% to -5.3%.
This decline followed a notable increase in Bitcoin transfers from miners to exchanges, suggesting growing selling pressure.
Only a few weeks prior, miners were increasing their BTC holdings despite rising costs and narrower margins. That has shifted as decreasing transaction fees impacted revenue, exacerbated by April’s halving and higher platform difficulty.
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The Bitcoin price continued its downward trend, hovering around $107,500 after experiencing a drop of approximately 10.8% in the past week.
Similar sell-offs have characterized the late stages of previous trading market cycles, often indicating crypto holder caution.
Data from Farside indicates that BTC exchange-traded funds have faced outflows exceeding $108 million since the week’s start, further heightening the market’s selling pressure.
As per Derbit data, options traders have made over $1.7 billion in bets predicting that Bitcoin’s price will surpass $130,000 by the year’s end.
Data from Polymarket suggests that participants believe there’s better than a 50% chance of that happening by 2025.
Analysts at CryptoQuant described the recent $19 billion drop as a “leverage flush,” indicating it represents a crypto market reset rather than the onset of a prolonged decline.
During Friday’s downturn, spot volume reached $44B (approaching cycle highs), futures $128B, while OI decreased by $14B with only $1B in BTC long liquidations. 93% of OI drop was not forced — it was a controlled deleveraging, not a cascade.
A very mature moment for Bitcoin. pic.twitter.com/sTrziRUXXo
— Axel
From a technical standpoint, Bitcoin’s weekly chart illustrates the price dropping below the bull market base level band, a range defined by the 20-week SMA and 21-week EMA.
(Source: BTC USD, TradingView)
This level has historically served as a significant pivot point in previous cycles. Now sitting close to $108,000, BTC is facing a crucial test.
A close below this threshold could shift short-term sentiment to pessimistic, paving the way for the $100,000-$102,000 base level area.
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Analyst Daan Crypto believes that the broader economic conditions still appear favorable. With stocks and gold near historic highs, robust market fluidity might price floor Bitcoin’s price stability near current levels.
$BTC has been hovering around its bull crypto market support band but is slipping again. It’s vital to maintain position around this area on higher timeframes and weekly closes.
As long as stocks & gold stay close to their all-time highs, I think BTC stands a good chance to maintain this zone.… pic.twitter.com/5C5u2c7Q3x
— Daan Crypto Trades (@DaanCrypto) October 16, 2025
Historically, trading in late-year often sees pronounced fluctuations. The market could go through another wave of market fluctuation as we approach the final quarter of 2025, before a clearer trajectory can be established.
Analyst TedPillows provided a graph comparing Bitcoin’s 2020 “Covid Crash” with the recent “Trump’s China Tariff Crash.”
$BTC has been consolidating since last week’s drop.
Crypto holder sentiment is at a historic low, with individuals panic selling and declaring “it’s all over” trending on social media.
This sentiment emerges not at crypto market peaks, but rather during bottoms. pic.twitter.com/6SQ4F7yPj5
— Ted (@TedPillows) October 16, 2025
These two trends exhibit similar patterns. In 2020, Bitcoin’s sharp decline was succeeded by a quick recovery and an extended rally to new highs. The 2025 chart appears to follow the same trajectory: a steep price drop followed by a formation of a base near the lows.
The current candles indicate signs of capitulation. The pronounced wicks and significant selling volume suggest that panic selling might be coming to a close, which is often a signal of a crypto market bottom.
During the analysis, Bitcoin’s price was nearly $110,000, potentially forming a double-bottom pattern akin to that observed in March 2020.
The symmetry of the chart implies that trading market fear could be peaking, indicating a potential recovery as selling pressure eases.
According to Glassnode’s data, smaller BTC holders continue to build their positions.
The charts reveal that the accumulation of wallets holding between 1 to 1,000 Bitcoin has surged since late September.
Simultaneously, large holders owning over 10,000 BTC have either lessened their buying or slightly reduced their positions, indicating that central accumulation has slowed down.
This trend demonstrates a renewed confidence among retail and mid-sized investors as Bitcoin trades within the $110,000-$115,000 range.
Historically, such accumulation by smaller holders is often witnessed before recoveries that follow significant trading market corrections.
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The post Will Bitcoin Recover After $5.6Bn Miner Dump? Analysts Weigh In on $110K Base level and 2020-Style Bottom appeared first on 99Bitcoins.
