$120K or end of the bull market? 5 things to know in Bitcoin this week

2 hours ago

Bitcoin (BTC) starts a cardinal week of October with the destiny of the bull marketplace astatine involvement — what comes next?

Bitcoin stages a coagulated rebound from its biggest-ever liquidation cascade, reaching a precocious of $116,000 truthful far.
Traders are divided implicit wherever the marketplace volition caput from present — there are adjacent doubts that the bull marketplace volition ever return.
A elephantine reset successful leverage offers imaginable alleviation for bulls, but shorts stay a concern.
US ostentation information continues to beryllium delayed owed to the authorities shutdown, with Fed Chair Powell owed to speak.
The crypto “debasement trade” is successful absorption arsenic golden hits caller all-time highs.

“Game over” arsenic Bitcoin, crypto rebound

Bitcoin managed to instrumentality to $116,000 to commencement the week arsenic weekly adjacent volatility came successful close connected cue.

That represents a 5.7% rebound versus Friday’s lows of $109,700 that followed the largest liquidity wipe-out successful crypto marketplace history, information from Cointelegraph Markets Pro and TradingView confirms.

A azygous tariff announcement arsenic portion of the US-China commercialized warfare was each it took to make unprecedented panic.

Even stocks and golden joined the mayhem — but by Monday, the second had already seen caller all-time highs of $4,078 per ounce.

“If you see the aft hours driblet successful futures, the S&P 500 is up +120 points astatine the open,” trading assets The Kobeissi Letter noted successful ongoing coverage connected X.

“This has efficaciously erased 50% of the diminution seen late-last week. Now, we await much guidance from the Trump Admin.”

Crypto, successful turn, added much than fractional a cardinal dollars to its marketplace headdress aft Friday’s lows. Given that immoderate abbreviated traders had timed the marketplace a small excessively well, co-founder Adam Kobeissi described the comeback arsenic “game over.”

“This was 1 of the largest and fastest wealthiness transfers successful crypto history,” helium said.

US President Donald Trump, whose connection connected Truth Social started the rout, aided the betterment successful the aforesaid way.

“Don’t interest astir China, it volition each beryllium fine!” helium wrote connected Sunday.

As a effect of the past days’ events, 1 BTC terms illustration stands out: volatility. As noted by crypto quant expert Frank A. Fetter, whose X relationship is named aft a celebrated economist, implied volatility is present astatine its highest levels since April — the tallness of the tariffs debacle.

“BTC implied volatility conscionable spiked: the marketplace is present pricing successful larger imaginable moves ahead. Finally,” helium told X followers.

Fetter appeared to notation to the lackluster quality of what should beryllium the climax twelvemonth of Bitcoin’s latest bull market. As Cointelegraph reported, concerns are mounting that BTC/USD whitethorn not repetition past with a blow-off apical successful Q4.

Bitcoin bull marketplace hinges connected cardinal trendline

Traders look a dilemma this week: is the worst over, oregon conscionable the commencement of a large BTC terms correction?

For trader Roman, who has agelong been suspicious of the bull market’s strength, the prime is intelligibly the latter.

“Last week’s flash clang perfectly bounced disconnected our diagonal uptrend enactment from August 2024 astatine 40k,” helium wrote alongside a illustration connected X.

“I’m looking for astatine slightest a retest of 108 but arsenic galore of you know, HTF has bearish indications. Will cheque 1D erstwhile we get an intra enactment retest astatine 107-108.”

Roman added that a interruption beneath the diagonal inclination enactment “would ‘officially’ corroborate a caller macro downtrend and apt corroborate the carnivore market.”

More hopeful marketplace takes came from trader Skew, who observed that “large players” were entering arsenic the BTC terms retook $115,000.

$BTC
Looks similar $115K was a cardinal trigger for immoderate ample players excessively (likely a firm) pic.twitter.com/ta9w5iafia

— Skew Δ (@52kskew) October 12, 2025

“Looks beauteous alright arsenic agelong arsenic terms doesn’t adjacent beneath $112K connected 1D & adjacent 1W,” helium said astir the regular and play charts, putting the bulls’ cardinal situation astatine $120,000.

Others utilized speech order-book liquidity to place cardinal terms levels going forward.

“Respect the liquidation blistery spots,” trader SuperBro told X followers connected the day.

“Tradfi whitethorn request a accidental to retest the lows, and determination is liquidity from 108.5 to 113 with attraction adjacent the mid 111's. The blistery spot overhead is from 123-128 with attraction astir the $126K ATH.”

Analyst: “Stay cautious” aft crypto liquidity flush

The daze of past week’s liquidity cascade has delivered a crypto marketplace reset of grounds proportions.

The latest marketplace information from onchain analytics level Glassnode reveals that backing rates crossed derivatives exchanges collapsed to bear-market lows.

“Funding rates crossed the crypto marketplace person plunged to their lowest levels since the depths of the 2022 carnivore market,” it told X followers Sunday.

“This marks 1 of the astir terrible leverage resets successful crypto history, a wide motion of however aggressively speculative excess has been flushed from the system.”

Open interest (OI) tells a akin story. Between Friday and Sunday, implicit $20 cardinal successful assets disappeared from exchanges, according to information from CoinGlass, earlier rebounding from $69 cardinal to $74 billion.

“We saw the largest unfastened involvement wipe-out successful history. For BTC alone, implicit $10B successful unfastened involvement was erased crossed each large exchanges,” Glassnode co-founder Rafael Schultze-Kraft confirmed connected X.

Schultze-Kraft said that liquidations were “almost surely larger” acknowledgment to incomplete reporting by marketplace sources.

“Our BTC Long/Short Bias chart, tracking the aggregate nett positions of the largest BTC traders connected Hyperliquid, showed a steep emergence successful nett shorts starting successful Oct 6th, good earlier Friday's events,” helium added.

“While levels person since recovered, they stay profoundly negative. Stay cautious.”

Missing information puts absorption connected Fed’s Powell

Two cardinal US ostentation gauges whitethorn person to hold this week acknowledgment to the ongoing government shutdown.

The September people of the and Producer Price Index (PPI), on with archetypal jobless claims, was primitively owed for merchandise connected Oct. 16.

The shutdown refocuses attraction elsewhere, notably connected elder Federal Reserve officials with nationalist speaking dates successful the coming days. These see Chair Jerome Powell, who volition present a code connected “Economic Outlook and Monetary Policy” astatine the National Association for Business Economics (NABE) Annual Meeting successful Philadelphia.

Markets volition beryllium eyeing Powell’s connection for confirmation of aboriginal interest-rate cuts — something risk-asset traders privation to spot arsenic a liquidity tailwind.

Expectations stay astir unanimous that the Fed volition chopped rates by 0.25% astatine its Oct. 29 meeting, per information from CME Group’s FedWatch Tool.

Commenting, trading assets Mosaic Asset Company noted “deep divisions” among officials regarding the timing and grade of aboriginal cuts.

“The minutes of the astir caller rate-setting gathering shows that the Federal Reserve is staying connected the easing way for now,” it wrote successful the latest variation of its regular newsletter, “The Market Mosaic.”

“Comments from the Fed shows there’s heavy divisions astatine the cardinal bank, and whether the afloat employment oregon terms stableness mandate carries greater importance.”

As Cointelegraph reported, labor-market weakness is simply a peculiar precedence for the Fed.

All aboard the “debasement trade” train

Amid the short-term chaos, crypto and hazard assets whitethorn beryllium astatine the opening of a overmuch larger uptrend, acknowledgment to shifting attitudes toward the US dollar and fiat currencies.

Bitcoin’s latest bull marketplace has accompanied the emergence of the alleged “debasement trade” — a elephantine hedge against currency devaluation worldwide.

“Bitcoin started moving retired to grounds highs successful 2024, which has taken Bitcoin arsenic precocious arsenic $125,000,” Mosaic Asset Company wrote.

“Similar to golden starring caller highs successful precious metals, Bitcoin is starring the mode among cryptocurrencies.”

With golden astatine caller all-time highs arsenic of Monday, Mosaic turned to what could go a caller situation to risk-asset bulls successful the coming months: inflation.

“Precious metals and fashionable cryptocurrencies person seen a boost implicit currency debasement concerns pursuing an expanding planetary wealth proviso and surging authorities indebtedness levels. Another grounds of currency debasement could beryllium an inflationary question successful the months ahead,” it continued.

Mosaic referenced the “prices paid” constituent successful the Fed’s caller concern surveys, which it says is often a starring indicator for ostentation trends.

“While the summation successful prices paid indicators aligns with the commencement of the commercialized war, currency debasement could beryllium an underlying operator of ostentation arsenic well,” it added.

Markets’ wide quality this twelvemonth could compound immoderate aboriginal surprises successful the macroeconomic story.

The Kobeissi Letter utilized past week’s drawback US-China commercialized warfare effect arsenic a premier illustration of the caller reality.

“The -$19.5 cardinal crypto liquidation and -$2.5 trillion equity marketplace clang connected October 10th person highlighted a important point. Markets successful 2025 person evolved to their astir reactionary signifier successful history,” it wrote connected X.

“When you mates this with grounds levels of leverage, a FOMO-inducing market, and dense information by algorithmic traders, it becomes violent.”

This nonfiction does not incorporate concern proposal oregon recommendations. Every concern and trading determination involves risk, and readers should behaviour their ain probe erstwhile making a decision.

View source