Bitcoin Handles $14B OI Drop As Spot Volume Surged To $44B: Controlled Reset?

Bitcoin is testing a critical support level near $110,000 after being rejected from the $116,000 supply zone, a level that has now become a major point of contention between bulls and ￰0￱ market remains fragile following the historic volatility from Friday’s crash, which erased billions in leveraged positions and triggered widespread ￰1￱ Reading: Binance Stablecoin Supply Surges To Record $42B: Liquidity Flows Back Into Markets While the price has managed to stabilize above key moving averages for now, momentum appears to be weakening as buyers struggle to absorb continued selling ￰2￱ analysts warn that if Bitcoin fails to hold this zone, a deeper correction toward the $105,000–$107,000 region could follow, marking another shakeout before a potential ￰3￱ analyst Axel Adler shared new data shedding light on the magnitude of Friday’s ￰4￱ to his analysis, spot trading volume surged to $44 billion, nearing cycle highs, while futures volume hit $128 ￰5￱ notably, open interest declined by $14 billion, yet only $1 billion of that was from BTC long ￰6￱ explains this was a controlled deleveraging event, not a liquidation cascade — suggesting that market participants reduced risk manually rather than being forced out.

Still, volatility remains elevated as Bitcoin fights to maintain structural support. A Controlled Reset Amid Growing Fear According to Axel Adler, the recent market crash revealed an important yet underappreciated aspect of Bitcoin’s ￰7￱ shows that 93% of the $14 billion decline in open interest (OI) during Friday’s sell-off wasn’t forced — meaning it wasn’t the result of automatic liquidations. Instead, traders and institutions chose to reduce leverage manually, closing positions to protect ￰8￱ describes this as a “controlled deleveraging”, a stark contrast to previous cycles where similar crashes often triggered chaotic cascades of ￰9￱ behavior marks a turning point in Bitcoin’s market ￰10￱ indicates that participants — especially institutional players — are managing risk more prudently, reinforcing a more stable and mature trading ￰11￱ past cycles, sharp liquidations often caused extreme volatility, magnifying losses across the ￰12￱ time, however, the market handled unprecedented stress with relative discipline.

Still, despite this sign of structural maturity, the emotional landscape has shifted ￰13￱ Bitcoin loses value and hovers near the $110,000–$112,000 support zone, fear is spreading across the ￰14￱ short-term traders are exiting positions, while long-term holders are reassessing exposure amid rising ￰15￱ notes that this phase — where fear peaks and confidence wanes — often defines the next market ￰16￱ demand returns at these levels, Bitcoin could confirm a healthy reset before the next ￰17￱ failure to hold support may test investors’ conviction, potentially pushing BTC into a deeper corrective phase before broader accumulation ￰18￱ Reading: Ethereum OI Jumps +8.2% As Traders Chase The Pump: Leverage Fueling ETH Again Bitcoin Holds Key Support, But Momentum Weakens Bitcoin is currently trading around $110,300, sitting directly on a key support zone after another round of selling pressure hit the ￰19￱ 4-hour chart shows BTC struggling to maintain upward momentum after failing to break above the $116,000–$117,500 resistance range, a level that previously acted as strong demand during earlier ￰20￱ rejection from this area triggered a sharp pullback, pushing BTC below both the 50 EMA (blue line) and the 200 EMA (red line) — a sign of weakening short-term ￰21￱ price is now testing horizontal support around $110,000, which aligns with the late September consolidation range.

A clean breakdown below this level could expose Bitcoin to further downside, with the next potential support around $106,000–$107,000. Related Reading: From $254M To $78.5B: Tron USDT Growth Drives Network Valuation Despite the bearish tone, oversold signals are beginning to appear on lower timeframes, suggesting that a temporary rebound is possible if bulls defend this zone ￰22￱ a sustainable recovery, Bitcoin must reclaim $114,000 and re-establish itself above the short-term moving ￰23￱ then, the market remains in a fragile equilibrium — with bulls defending key support and bears maintaining control of short-term ￰24￱ next few sessions will be decisive for BTC’s ￰25￱ image from ChatGPT, chart from ￰26￱