Bitcoin has demonstrated resilience above the $110,000 mark, buoyed by strong spot demand from U.S.-based investors, but the question remains: can this level hold?. The Coinbase Premium Index, a key indicator of U.S. buying pressure, has played a significant role in maintaining Bitcoin's position.
The Coinbase Premium Index Explained
The Coinbase Premium Index measures the price difference between Bitcoin on Coinbase and Binance. A higher value suggests stronger buying pressure from U.S. investors. Coinbase is popular among U.S. investors, particularly large institutions, while Binance has a larger global user base. This difference can indicate whether U.S. investors are exerting more buying pressure than global investors. A positive premium typically signals sustained U.S. buying interest, reinforcing near-term market resilience.
On October 10, 2025, the index spiked to 0.18, its highest reading since March 2024, even amidst a sharp Bitcoin price correction from $123,000 to around $110,000. This suggests that large spot bids were actively filled between $110,000 and $100,000 despite the market panic.
On-Chain Data and Market Dynamics
Supporting the narrative of U.S. buying interest, on-chain data from CryptoQuant highlighted rapid accumulation among short-term holders (STHs), specifically wallets holding BTC for under a month. Following the recent correction, STH supply surged from 1.6 million BTC to over 1.87 million BTC within days, underscoring aggressive dip-buying behavior.
However, older coins have begun moving again, introducing a potential source of short-term friction. Roughly 7,343 BTC aged between two and three years were reactivated and moved on-chain this week, a signal that some long-term holders may be realizing profits or repositioning.
Conflicting Signals and Potential Volatility
According to crypto analyst Maartunn, Binance's net taker volume indicated persistent selling pressure, while the short-term holder Spent Output Profit Ratio (STH-SOPR), which measures whether recent spenders are selling at a profit or loss, remains below 1. This suggests active profit-taking was still prevalent among STHs, a dynamic that has temporarily capped credible recovery momentum despite the strong accumulation backdrop of other participants.
Data from CryptoQuant painted a dual narrative for Bitcoin, with steady accumulation colliding with looming short-term volatility. Data also indicated that 364,000 "mobilized" BTC, signaling conflicting scenarios.
Analyst Perspectives
Bitcoin analyst AlphaBTC shared a chart indicating that the area between $110,000 and $112,000 was key for Bitcoin. According to the analyst, a four-hour candlestick close above this area was required for the BTC price high to rebound, or a drop to $105,000 is likely. Swissblock noted that Bitcoin's "lifeline support" sits at $110,000, a level bulls must hold to ensure a bullish trend continues.
The Road Ahead
While strong U.S. demand for Bitcoin remains stable above $110,000, revived long-held coins and surging derivatives point to turbulent days ahead. The coming days will be critical in determining whether Bitcoin can maintain its position above this key level and potentially challenge higher resistance zones. A failure to consolidate above $117,500 could risk a pullback, while holding above former resistance would strengthen the case for continuation higher.
