The key takeaways
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Bitcoin’s price is being pushed down by the deterioration of US-China relations and President Donald Trump’s recent expansion in US tariffs. Traders are also avoiding leveraged long positions.
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Analysts are optimistic that the next macroeconomic event will reverse this downward trend.
Bitcoin (BTCThe market is trying to rebalance itself after the sharp correction of last week, but the increasing headwinds caused by Trump’s renewed trade war with China as well as the US shutdown for the longest time in history are keeping bullish traders from taking new positions.
Since Bitcoin reached $107,000 on the Coinbase exchange, Oct. 10, the Coinbase Premium Index (which measures the difference in the volume of market purchases and sales) and spot cumulative volume delta for both professional and retail investors have steadily been trending up.
The chart shows how the dynamics of volume, funding and open interest have changed since the October 10th sell-off. US institutional and retail investors have been accumulating BTC in large quantities, whereas Binance traders of perpetual futures (red line), who are aggressive sellers of BTC.
When comparing Binance’s spot volumes with its futures (third chart), the delta for the spot is positive. However, the delta for the perps is negative. It highlights increasing short positions, supporting the idea that perps is driving the selling and reinforcing a downtrend. Meanwhile, spot buyers are providing strength between $107,000 and $108,000.
Below is an alternate expression.
The liquidation heatmap (Binance Bybit BitMEX), based on the potential short-term price movement of Bitcoin, suggests that traders may chase clusters in liquidation for longs between $106,300 and $104,000, while shorts are likely to be closed at $115,000.
Quinn Thompson, Chief Investment Officer at Lekker Capital, said that prices will remain volatile in the near term. said:
“10/10 liquidation cleared more leverage in $ and % of OI than the entire Jan-Apr ‘25 period. Opportunity ahead is similar to pre-Trump victory ‘24.”
Following in the same vein, macroeconomics-focused account Tom Capital reminded Traders “just trade the price action” The next few days are expected to be filled with actionable events.
You’ll have to deal with these stories over the coming week:
US CPI Release
Reopening of the US Government is possible
– Fed rate cut (future cuts)
– Nikkei topping at 50,000
– Top gold
– Taco or No TACOOr you could…
— Tom Capital (@Tom__Capital) October 21, 2025
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Source: cointelegraph.com
