Bitcoin Bull Market Risks Collapse As Bulls Fight $116,000

BitcoinBTC() is a pivotal week for the month of October, with the future of the bullish markets at stake. What happens 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.

• Bulls may find relief from a massive reset of leverage, while shorts are still a worry.

• Due to the shutdown of government, US inflation figures continue to be delayed. Fed chair Jerome Powell will speak.

• This cryptography “debasement trade” Gold reaches new highs.

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

Bitcoin returned to $116,000 at the start of this week. weekly close volatility I arrived on time.

It was also a 5.7% rise from the lows reached on Friday of $109700, following the largest liquidity wipe-out Data from the crypto market. Cointelegraph Markets Pro The following are some examples of how to get started: TradingView confirmed.

Single tariff announcement It only took a few days for the US-China Trade War to trigger unprecedented panic. 

Gold and stocks also joined in the chaos, but the gold price had reached new highs on Monday of $4,078 an 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 half-a-billion dollars after the Friday lows. Due to the fact that short traders were able to time the market a little too wellAdam Kobeissi (co-founder) described the return 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 caused the initial rout in this case, helped to recover the situation.

“Don’t worry about China, it will all be fine!” he wrote On Sunday,

Volatility is one of the most notable BTC charts as a result recent events. Frank A. Fetter’s X account, named after an economist famous for his crypto-quant analysis, noted that implied volatility was now at the highest since April. This coincided with the peak 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’s comment seemed to indicate that the bull market for Bitcoin was not reaching its climax. As Cointelegraph reportedConcerns are growing that BTC/USD will not be able to repeat the history of a top blowing off in Q4.

Bitcoin bull market is based on trendline

This week, traders are faced with a difficult decision: is the worst behind us or has the price of BTC just begun to correct?

Roman the trader, who had long questioned the market’s bullish strength, chose the former.

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

“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 About the daily and week charts, the key challenge for the bulls is $120,000.

Some people use exchange order book liquidity to predict key future price levels.

“Respect the liquidation hot spots,” SuperBro told X Followers on the 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, a platform for on-chain analysis of market data, has revealed the latest market statistics that show funding rates at derivatives exchanges have collapsed. 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 X Followers Sunday 

“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 It is a story that (OI), tells. 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 stated that liquidations would be taking place. “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 added. 

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

Powell’s Fed in spotlight after missing data

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

Originally, the September PPI and initial claims of unemployment along with the September PPI were due to be released this Thursday.

This shutdown has refocused attention on 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” At the National Association for Business Economics’ (NABE) annual meeting in Philadelphia.

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 data shows that almost everyone expects the Fed to cut interest rates by 0.25 percent at its meeting on October 29. FedWatch Tool.

Mosaic Asset Company commented on the trading resource “deep divisions” There is disagreement amongst officials about the future timing and magnitude of cuts.

“The minutes of the most recent rate-setting meeting shows that the Federal Reserve is staying on the easing path for now,” It wrote about it in its latest 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.”

You can also read about the advantages of using Cointelegraph reportedThe Fed has a special focus on the labor market.

All aboard! “debasement trade” Trains

In the midst of the chaos in the short term, it is possible that crypto assets and risky assets are just at the start of a larger trend, due to the changing attitudes towards the US dollar.

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 devaluation of currencies worldwide.

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

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

Mosaic, with gold reaching new highs on Monday, turned its attention to the inflation that could pose a challenge for risk asset bulls over the next few months.

“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,” It continued.

Mosaic References “prices paid” The Fed has recently conducted a business survey, and it is a component of the Fed’s surveys. It said that this indicator can often be viewed as indicating inflation trends. 

“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.

The overall market character of this year could compound future macroeconomic surprises.

Kobeissi Letter cited the US-China Trade War of last week as an example of a 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.”

This article contains no investment recommendations or advice. Each investment or trading decision involves some risk. Readers should do their own research before making any decisions.