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Bitcoin is approaching the end of October with a slight upward trend after a volatile month marked by a significant sell-off. BTC, the largest cryptocurrency by market cap, is currently trading near $115,000, which is 8% below its all-time high.
Furthermore, the broader altcoin market is also gaining momentum again after suffering massive liquidations in mid-October. The crash triggered over $18 billion in liquidations in the derivatives market, signaling widespread volatility.
Nonetheless, Bitcoin has increased by 5% over the last month, and prices are now facing resistance at $116,000. This recovery has sparked cautious optimism among market participants, despite Bitcoin's typically strong performance in October.
Analysts say staying above key support levels in the coming days will be crucial to determining whether the market can sustain a broader rebound or collapse.
Multiple analysts have observed mixed technical trends, indicating the possibility of a breakout to either a higher or lower level for Bitcoin. According to Rekt Capital, a cryptocurrency analyst, Bitcoin's chart has recently broken out from the Ascending Triangle on the Daily timeframe. “Bitcoin is enjoying a strong rebound from the Macro Range Low,” the analyst said.
In addition, other analysts have stated that if Bitcoin recovers and holds above $120,000, market sentiment could shift decisively bullish, potentially opening the door for a move to $130,000 and beyond.
However, if this recovery fails, it might settle between $107,000 and $115,000 or lead to increased selling pressure, causing the price to drop back toward $105,000. Other traders are worried about low volume and bearish divergences on momentum indicators such as the Relative Strength Index (RSI).
Also Read: Will Bitcoin Hit $100K or $120K? Big Move Could Surprise Investors
As Bitcoin shows signs of regaining momentum, external macroeconomic factors continue to exert influence. The new trading week began with risk assets, such as cryptocurrencies and stocks, rising due to signs that trade tensions between the US and China might ease.
The rebound happened just days before the scheduled meeting between US President Donald Trump and Chinese President Xi Jinping on Thursday. During this meeting, trade negotiations will be discussed to prevent further escalation between these two major global economies. Furthermore, the forthcoming Federal Open Market Committee (FOMC) decision on interest rates is expected to exert a favorable indirect influence on Bitcoin, as low interest rates typically benefit risk-on assets.
According to analyst Rekt, Bitcoin is positioned for a positive Weekly Close above the 21-week EMA, which is considered a key support zone by technical traders. While the move is a bullish sign, some analysts remain skeptical, warning that Bitcoin needs to build on this support to confirm it is not a head-and-shoulders bearish reversal pattern in play, which would be the case if prices dip below the $109,000 neckline.
According to several long-term projections, a positive momentum above Bitcoin’s present level might trigger a rally towards 136,000. Meanwhile, the collapse of the defense at key support levels may introduce downside risks.
