Bitcoin markets stabilized after leveraged liquidations to the tune of more than $1.7 billion. It has increased the share in the cryptocurrency to 57%, with Ethereum sharing now down to 12 percent. The month of October is traditionally the most successful month of BTC.
With Q4 near, analysts are optimistic of a breakout, and the comments of Powell and the core PCE data this week could shape the direction of the market.
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Remarkably, the potential for recovery exists in Bitcoin up to key levels even though recent decline signs were observed. Coinglass records showed long futures liquidation was 31.75 million in the last 24 hours. The pleading sentiment demonstrated the precarious situation of the present market mood. Support levels of $111,500-110,000 impact BTC dramatically.
Source: CoinGlass
Technical indicators imply that BTC would rebound. Analyst Ali saw an inverse head and shoulders chart developing around the $112,800 mark. The trend may see BTC go to target $129,000 -130,000, should it be positively tested.
The analysis however speculates that BTC still is in corrective stages. The market has divided, and traders are waiting for some indication of the market in days to come.
Source: X
Bitcoin is experiencing its first real test since the steep rise that began at its $75,000 lows. A BTC short-covering rally would be possible should the support between $110-112,000 succeed.
The rally could revert the prices to the levels of $118,000 to $120,000. Nonetheless, traders are conservative. The problem of the market at large is not over, and it is unclear that BTC will be subjected to its success.
On-series breaches indicate growing bearishness. According to Santiment, the volume of BTC trading in the past 24 hours had increased by an astonishing 90% to reach $45 billion. Higher volume with falling prices means there is an accelerating selling pressure off. Most of the traders are opting out in fear of further losses. This increasing aversion to owning Bitcoin may precondition protracted auctions.
Source: Santiment
The latest and recent Federal Reserve rate cut has not given momentum to crypto markets. The anticipated increase of risk assets was not achieved. Rather, sentiment in the market has dropped. Traders are currently awaiting the path set by Jerome Powell in his new words. Depending on the tone, his remarks could either promote the rally or pressure more.
During the last days of Q3, the substance of volatility are expected to increase. The speech by Powell must reassure Bitcoin bulls. Bitcoin may protect its support in case Powell supports risk assets. Conversely, should Powell front a hawkish voice; another liquidation may come into play. His statements are expected in the market.
Altcoins were also subjected to the price drop on Monday. Bitcoin was experiencing a fall near the larger tokens dampening weakness in the market. The liquidity is still limited, and market struggles continue in the form of sell-off. Macroeconomic signs have also influenced the crypto market.
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