Main Insights:
US spot demand on Coinbase keeps Bitcoin above $110,000.
7,300 previously inactive BTC were moved, suggesting profit-taking.
Derivatives wallets transferred 364,000 BTC, indicating upcoming volatility.
Bitcoin (BTC) has strengthened its position above $110,000, supported by robust spot demand from US investors. The Coinbase Premium Index, which tracks price disparities between BTC on Coinbase and global exchanges, has consistently shown a positive trend during the recent sell-off triggered by liquidations.
On October 10, the index surged to 0.18, its highest since March 2024, indicating that significant spot bids were fulfilled between $110,000 and $100,000 despite market unrest. A positive premium usually reflects sustained US buying interest, bolstering market resilience in the near term.
Additionally, on-chain data from CryptoQuant showed accelerated accumulation among short-term holders (STHs), specifically wallets that have held BTC for less than a month. After the recent dip, STH supply increased from 1.6 million BTC to over 1.87 million BTC in just days, highlighting strong dip-buying activity.
However, older coins have begun to circulate again, potentially introducing short-term resistance. Approximately 7,343 BTC aged between two and three years were moved on-chain this week, indicating that some long-term holders might be cashing out or reallocating their assets.
According to crypto analyst Maartunn, Binance’s net taker volume reflects ongoing selling pressure, while the short-term holder Spent Output Profit Ratio (STH-SOPR), which evaluates whether recent spenders are profiting or incurring losses, remains below 1.
This indicates that active profit-taking is still common among STHs, a factor that has temporarily hindered substantial recovery momentum, despite the significant accumulation by other investors.
Related: DOGE holders are buying dips: Is $1.60 by 2026 realistic?
364,000 “mobilized” BTC signals mixed scenarios
In parallel, data from CryptoQuant presented a dual narrative for Bitcoin, highlighting a trend of steady accumulation alongside rising short-term volatility. The 30-day Netflow simple moving average (SMA) shows a significant outflow of 5,620 BTC, indicating long-term holder confidence and a diminishing supply on exchanges, contrasted by a rising activity in the derivatives sector.
Between October 9 and 14, around 364,000 BTC was transferred within the internal wallets of derivatives exchanges, mainly Bitfinex (210,000 BTC), Bybit (108,000 BTC), and Binance (37,000 BTC). These transfers suggest that traders are preparing for significant leveraged positions by funding their margin accounts with existing capital.
This contrast between a tightening supply landscape and increasing derivatives activity sets the stage for potential volatility. While the overarching trend remains bullish, the short-term outlook hints at an imminent turning point for BTC.
Related: Bitcoin’s ‘Uptober’ vibes hinge on Fed rate cut odds, Nasdaq and tech stocks’ response
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
