Bitcoin is currently trading at $112,976.27, up +1.77% in the last 24 hours. However, the price is down -0.18% hourly and -0.39% weekly.

Price volatility has returned to the previous trading range after a strong increase in liquidity near the historical high of $124,000. The support level of $112,000 is now becoming a crucial threshold that buyers must defend to avoid potential risks.

Key Levels Indicate Support at $111.9K and Resistance Near $119K

On the 4-hour BTC/USDT chart on KuCoin, the current resistance levels are $114,755 and $116,813, followed by strong resistance at $119,504. Above, $123,288 marks the final resistance before the ATH area of $124,000.

Bitcoin Price Analysis: Source: X

On the downside, $111,918 is the nearest support level, while $103,190 is the next significant support level if this area is breached. These thresholds provide a clear pathway for traders to monitor breakout or retreat areas.

Network Activity Declines As Long-Term Sellers Start Positioning

Bitcoin's on-chain activity has decreased, as indicated by NAA (Number of Active Addresses), falling from 60% to 30%. This sudden decline indicates reduced cryptocurrency volatility, meaning short selling pressure has decreased and speculative activity has diminished.

Bitcoin Normalized Active Address Activity (0-100): Source: CryptoQuant

However, the annual NAA trend has increased from 30% to 40% since Bitcoin reached $80,000, indicating that long-term holders are becoming more active. These long-term sellers are gradually entering the market, preparing to sell when prices rise.

The highest NAA of 85% occurred during a strong sell-off in September 2023 when Bitcoin traded near $37,000, reflecting capitulation. Compared to that period, the current trend indicates a slower, more strategic selling phase.

Bearish Signal As Bull Score Index Drops to 20

Furthermore, data from CryptoQuant shows that the Bull Score Index has dropped to 20, indicating that the bullish trend is weakening. This index combines important indicators such as MVRV Z-Score, Profit & Loss Index, Cycle Index, and Trader's Profit Margin.

These indicators suggest a gradual decline, causing the market to shift from a "bullish" zone to a "bearish" zone in recent weeks. The weakening structure implies that Bitcoin may face significant challenges unless new demand or liquidity supports the breakout.

Historical patterns show that such low Bull Score indices often appear before corrections or prolonged consolidation periods. As long as Bitcoin remains above $112,000, the overall structure is maintained, but the upward momentum may be constrained.

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