Bitcoin News Today: BTC Holds Near $108K as Market Eyes Potential Rebound From Lows

Bitcoin was trading at around $108,445 on October 19, after a week marked by volatility. This represents its lowest level in months, driven by weak buyer demand and changing macroeconomic conditions. Analysts are cautioning that if these trends persist, the price may drop even further.

According to trader Crypto Tony, market indicators are pointing to another decrease, with Bitcoin potentially falling to around $95,000 or even hitting $91,000 to stabilize. The comments show traders are becoming more cautious, and the sentiment is turning bearish.

Meanwhile, other players in the market anticipate a period of short-term price consolidation. Trader Daan Crypto Trades pointed out that Bitcoin could rebound by the end of the CME, potentially indicating that the cryptocurrency would stay around the area of $107,000 throughout the weekend. He cited $105,000 as a significant support area and said that further losses could be avoided with additional strengthening of the world equity markets.

The equity markets also closed positively at the end of the week, with the S&P 500 reaching 6,664, and they recovered half of their past losses. Analysts credited the recovery to comments made by US President Donald Trump, who indicated that new tariff increases on China might not be permanent, calming investors.

Technical Indicators Show Mixed Signals

Specific technical indicators suggest that Bitcoin traders can be relieved. According to analysts, the Relative Strength Index (RSI) of Bitcoin has reached its lowest point since April, when the cryptocurrency briefly dropped to $75,000 before recovering. RSI is developing a bullish divergence on the four-hour chart, indicating that the selling pressure may decline below the $110,000 level.

Market sentiment is currently relatively weak, despite the latest indicators. On Friday, the Crypto Fear & Greed Index dropped to 22 out of 100, signaling that the market entered the extreme fear territory for the first time in a long while. Additionally, Polymarket points out that there's a 52% chance Bitcoin will fall below $100,000 in October as more traders begin to feel bearish.

Bitcoin price peaked at an all-time high of $126,198 earlier this month and since then has gone downwards, nosediving on October 10. The market, however, has not experienced a definitive recovery since then, with many bullish investors leaving the market due to uncertainty.

Also Read: Bitcoin Falls to $107,000 as Analysts Predict Recovery Amid Weak Momentum

Market Metrics Indicate a Cautious Recovery

Bitcoin has a market capitalization of $2.16 trillion, up 1.36%. The volume of trading has decreased by 27% over the past 24 hours, indicating that traders are being cautious. 

Analysts warn that any decline below the $100,000 mark may lead to additional liquidation, which would put downward pressure on prices. Nonetheless, long-term investors like Michael Saylor's strategy continue to accumulate Bitcoin, albeit at a slower rate.

Scarcity is a point of interest as a long-term generator of value in the cryptocurrency, with approximately 94.9% of the total number of Bitcoin mined. At the current point, the short-term perspective of Bitcoin remains relatively complex, and traders are closely monitoring support levels around $106,000 and resistance levels around $110,000.