Bitcoin Bull Market Crash Risked as Bulls Fight For $116,000

BitcoinBTC) starts a key week of October with the fate of the bull market at stake — what comes next?

• Bitcoin has made a strong recovery from the biggest liquidation ever, with a peak of $116,000 reached so far.

• Traders are divided over where the market will head from here — there are even doubts that the bull market will ever return.

• The bulls could benefit from the reset, while those who are short remain concerned.

• Due to the shutdown of government, US inflation continues to be delayed. Fed Chair Powell will speak.

• Cryptography is a way to protect your data. “debasement trade” The gold market is booming as it reaches all-time records.

“Game over” Crypto currency, including Bitcoin, is on the rebound

Bitcoin has returned to $116,000 in the first week of 2019. weekly close volatility I arrived on time.

It represents a 5,7% rise from the lows reached on Friday of $109700, following largest liquidity wipe-out In the history of crypto markets, you can find data on Cointelegraph Markets Pro You can also find out more about the following: TradingView confirms.

The single most effective way to improve your life is by utilizing tariff announcement It only took a few days for the US-China Trade War to trigger unprecedented panic. 

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

 “If you include the after hours drop in futures, the S&P 500 is up +120 points at the open,” The Kobeissi Letter – Trading Resource ongoing coverage On X. 

“This has effectively erased 50% of the decline seen late-last week. Now, we await more guidance from the Trump Admin.”

Crypto’s market capitalization increased by more than a half billion dollars after the Friday lows. Due to the fact that short traders were able to time the market a little too wellAdam Kobeissi, the co-founder of the company, described it as “game over.”

“This was one of the largest and fastest wealth transfers in crypto history,” He said.

US President Donald Trump’s message, broadcast on Truth Social and which began the downfall, helped to recover in the same manner.

“Don’t worry about China, it will all be fine!” He wrote Sunday is a holiday.

A BTC chart that stands out is the volatility one. As noted by crypto quant analyst Frank A. Fetter, whose X account is named after a famous economist, implied volatility is now at its higHest levels since April — the height of the tariffs debacle. 

“BTC implied volatility just spiked: the market is now pricing in larger potential moves ahead. Finally,” he told X-Followers

Fetter seemed to be referring to what was supposed to be the year that culminated the latest bull run in Bitcoin. As Cointelegraph reportedThere are increasing concerns that BTC/USD might not have a repeat of history in Q4 with the blow-off peak.

Bitcoin bull market is based on a key trendline

The week ahead is a tough one for traders: has the worst passed, or are we just at the beginning of an important BTC correction?

Roman, a trader who is suspicious about the strength of bull markets, has chosen the second option.

“Last week’s flash crash perfectly bounced off our diagonal uptrend support from August 2024 at 40k,” He wrote Alongside a graph on X, there is a table. 

“I’m looking for at least a retest of 108 but as many of you know, HTF has bearish indications. Will check 1D when we get an intra support retest at 107-108.”

Roman said that the break under the diagonal trendline is a sign of a strong market. “would ‘officially’ confirm a new macro downtrend and likely confirm the bear market.”

Skew’s optimistic market take was backed up by his observations. “large players” BTC prices retook over $115,000.

$BTC
There are also some big players who were triggered by $115K (likely from a company). pic.twitter.com/ta9w5iafia

— Skew Δ (@52kskew) October 12, 2025

“Looks pretty alright as long as price doesn’t close below $112K on 1D & next 1W,” He said The bulls have a $120,000 target on the weekly and daily charts.

Other people use the liquidity of exchange order books to determine key prices levels for the future.

“Respect the liquidation hot spots,” SuperBro told X people will be following you on that day. 

“Tradfi may need a chance to retest the lows, and there is liquidity from 108.5 to 113 with concentration near the mid 111’s. The hot spot overhead is from 123-128 with concentration around the $126K ATH.”

Analyst: “Stay cautious” Crypto liquidity Flush

Last week’s shock liquidity cascade has caused a reset in the crypto markets of unprecedented proportions.

Glassnode’s latest data on the market shows that funding rates for derivatives markets have fallen to a record low. bear-market lows.

“Funding rates across the crypto market have plunged to their lowest levels since the depths of the 2022 bear market,” You can also find out more about us here. told Sunday, X follows. 

“This marks one of the most severe leverage resets in crypto history, a clear sign of how aggressively speculative excess has been flushed from the system.”

Open interest The story is similar. According to the data of CoinGlassBefore rebounding from $69 Billion to $74 Billion.

“We saw the largest open interest wipe-out in history. For BTC alone, over $10B in open interest was erased across all major exchanges,” Glassnode co-founder Rafael Schultze-Kraft confirmed On X.

Schultze Kraft said liquidations are a good idea. “almost certainly larger” Market sources are not always complete in their reporting.

“Our BTC Long/Short Bias chart, tracking the aggregate net positions of the largest BTC traders on Hyperliquid, showed a steep rise in net shorts starting in Oct 6th, well before Friday’s events,” He also added. 

“While levels have since recovered, they remain deeply negative.  Stay cautious.”

Powell in the spotlight as Fed faces missing data

This week, two important US inflation measures may be delayed due to ongoing negotiations. government shutdown.

Originally, the September Print of the Producer Price Index and initial Jobless Claims was due to be released on October 16.

This shutdown has shifted attention to other Federal Reserve officials who have public speaking engagements in the next few days. This includes Chair Jerome Powell who will give a speech at the Federal Reserve on “Economic Outlook and Monetary Policy” The National Association for Business Economics Annual Meeting (NABE), held in Philadelphia, was a great success.

Markets will be eyeing Powell’s language for confirmation of future interest-rate cuts — something risk-asset traders want to see as a liquidity tailwind.

CME Group’s data indicates that there is a near-unanimous expectation of 0.25% rate cuts by the Fed at their meeting on Oct. 29, according to CME Group’s FedWatch Tool.

Mosaic Asset Company commented on the trading resource “deep divisions” Officials are divided on the extent and timing of future reductions.

“The minutes of the most recent rate-setting meeting shows that the Federal Reserve is staying on the easing path for now,” In the most recent edition of their regular newsletter “The Market Mosaic.”

“Comments from the Fed shows there’s deep divisions at the central bank, and whether the full employment or price stability mandate carries greater importance.”

The following are some of the ways to get in touch with us. Cointelegraph reportedThe Fed has a special focus on the labor market.

All aboard! “debasement trade” Trains

Crypto and risk assets could be on the cusp of a major uptrend due to shifting attitudes about the US Dollar and fiat currency.

Related: ‘Debasement trade’ will pump Bitcoin, Ethereum DATs will win: Hodler’s Digest, Oct. 5 – 11

Bitcoin’s recent bull market is accompanied by the “debasement trade” — a giant hedge against currency devaluation worldwide.

“Bitcoin started moving out to record highs in 2024, which has taken Bitcoin as high as $125,000,” Mosaic Asset Company wrote. 

“Similar to gold leading new highs in precious metals, Bitcoin is leading the way among cryptocurrencies.”

Mosaic has turned attention towards what may become a new challenge in the months to come for bulls of risky assets: inflation.

“Precious metals and popular cryptocurrencies have seen a boost over currency debasement concerns following an increasing global money supply and surging government debt levels. Another symptom of currency debasement could be an inflationary wave in the months ahead,” Continue reading

Mosaic References “prices paid” Fed has included a component of its recent business surveys that it claims is often an indicator for trends in inflation. 

“While the increase in prices paid indicators aligns with the start of the trade war, currency debasement could be an underlying driver of inflation as well,” It added.

This year’s market performance could be a precursor to any surprises that may come in future years.

Kobeissi Letter uses the US-China sudden trade war reaction of last weekend as a prime instance of new reality.

“The -$19.5 billion crypto liquidation and -$2.5 trillion equity market crash on October 10th have highlighted a crucial point. Markets in 2025 have evolved to their most reactionary form in history,” You can also find out more about us here. wrote On X. 

“When you couple this with record levels of leverage, a FOMO-inducing market, and heavy participation by algorithmic traders, it becomes violent.”

The article is not intended to provide investment advice. Risk is inherent in every investment decision and trade. The reader should always do research prior to making a final decision.