Bitcoin Price: Unveiling Pivotal Market Moves and $118K Outlook

The cryptocurrency market often presents sudden shifts. Recently, **Bitcoin (BTC)** staged a significant rebound. Bulls now face the challenge of pushing prices higher. They aim to squeeze out short positions. This action could prevent a full retrace to the crucial $102,000 wick on Binance. Many investors closely watch these developments. They seek to understand the underlying market dynamics. This week brings several key factors into play. These include macroeconomic data and evolving market sentiment. Investors therefore need to remain vigilant.

Bitcoin Price Action: Navigating Volatility

Bitcoin entered the new week with renewed strength. Bulls pushed the **Bitcoin price** past $111,000. This improvement followed a volatile Sunday close. BTC capped the week at $108,600 before a brief retracement. Data from various market insights platforms shows resurfacing buyer strength. This strength emerged during Asia’s first trading session. It allowed the jump to $111,000. Traders widely expect continued volatility in the coming days. For instance, trader CrypNuevo suggested a short squeeze could define the rest of October. He pointed to a large cluster of short liquidations. These lie between $116,000 and $117,000. CrypNuevo highlighted ‘upside imbalances’ as a key target. Crypto investor Ted Pillows also identified $112,000 as an important reclaim level. He noted that easing US-China trade tensions could support further rallies. Furthermore, attention remains on gold’s performance. Gold recently hit a record $4,380 per ounce. Daan Crypto Trades observed gold’s strong run versus Bitcoin’s ‘lackluster’ performance. He suggested capital might flow from gold into riskier assets. Equities would benefit, and crypto would likely capture a portion. Therefore, these dynamics directly influence Bitcoin’s immediate future.

BTC Market Analysis: Bearish Shadows and Unfilled Wicks

Despite recent gains, bearish predictions continue to follow Bitcoin. The October 10 market meltdown casts a long shadow. Some traders maintain a cautious market view. Trader Roman, for example, has voiced concerns about Bitcoin’s fundamental strength. He argues that BTC/USD faces declining volume. This occurs even as prices reach new all-time highs. Relative Strength Index (RSI) values on longer time frames indicate a bearish divergence. This divergence suggests a potential reversal. Roman also points to record-high MACD and momentum loss. He advises taking profits on long-term positions. He believes the bull run may not last much longer. Moreover, a potential rebound, even to $118,000, could form a head and shoulders pattern. This pattern often signals a trend reversal. A break above this level would invalidate the pattern. Consolidation also remains a possibility. A bullish divergence appeared in the four-hour RSI after the drop to $102,000. However, many still expect the market to ‘fill’ that daily candle wick. Roman interprets the move above $111,000 as a bearish retest. He notes decreasing volume supporting this theory. The $102,000 wick on Binance therefore remains a significant point of concern for many in their **BTC market analysis**.

US CPI Data: A Rare Macro Catalyst Amidst Shutdown

The upcoming week features a rare macroeconomic event. This event is generating considerable excitement among commentators. The Consumer Price Index (**US CPI data**) will be released on Friday. This key inflation gauge will proceed despite the ongoing US government shutdown. Trading resource The Kobeissi Letter highlighted this unusual occurrence on X. It marks the first Friday CPI release since 2018. The timing holds particular significance. The Federal Reserve plans to meet just five days later. They will decide on interest-rate changes. Macro data prints leading up to these meetings are crucial for officials. The stakes are currently higher than ever. The shutdown has delayed most inflation data publications. The Labor Department confirmed that no other releases would be rescheduled. This situation arises during a pivotal time for the Fed. They debate whether to continue rate cuts. Speculation now points to a potentially ‘bullish’ September CPI report. A lower-than-expected CPI print would boost risk assets. This outcome increases the odds of a rate cut. Such a cut would, in turn, boost liquidity inflows later. Current data from CME Group’s FedWatch Tool indicates market expectations. Markets already anticipate a 0.25% cut on October 29. Furthermore, the US-China trade war could act as a disruptive force. Markets remain sensitive to any news from President Donald Trump regarding trade deals.

Crypto Leverage: Cautious Return to Risk-Taking

New data shows **crypto leverage** is gradually returning to the market. Traders are digesting the impact of the earlier $19 billion rout. On-chain analytics platform CryptoQuant reports a rebound. Bitcoin’s estimated leverage began rising immediately after the October 10 liquidation cascade. Contributor Arab Chain noted this increase in a CryptoQuant blog post. The index rose from lows near 0.148 to around 0.166 last week. This gradual increase indicates a return of leveraged activity. Some traders have started reopening positions. This follows a modest improvement in sentiment. The large liquidation wave has also halted. Arab Chain stated that this slow addition of leverage reflects a cautious trader mentality. It also suggests limited expectations for significant price increases. A continuation of this trend could signal a gradual restoration of confidence. This holds true especially if the price remains above the $110,000 support level. Leveraged trading has previously caused high-profile casualties. For example, trader James Wynn incurred a $4.8 million loss last week. Therefore, caution remains paramount for those utilizing leverage.

Bitcoin Dominance: A Make or Break Moment for Altcoins

Bitcoin’s share of the overall crypto market cap is back in focus. Traders are growing increasingly impatient. After October’s volatility, which significantly impacted altcoins, **Bitcoin dominance** has stabilized. However, potential trouble looms ahead. Trader and analyst Rekt Capital stated that Bitcoin Dominance has confirmed a loss of its Macro Uptrend. This validates a new Macro Downtrend. Bitcoin Dominance has converted both the Uptrend (light blue) and 60% (black) into new resistances. The ~64% level also acts as new resistance. Dominance measured 59.6% at the time of writing. It had spiked to 63.5% on October 10. Rekt Capital sees the area around 70% as classic trend reversal territory. Turning old supports into new resistance suggests a new Macro Downtrend. This will occur over time. The condition for this trend is that these levels continue as resistance. This applies to any limited upside BTCDOM might muster. Losing the green 57.68% level as support would likely kickstart a major Altseason. A basket of Binance’s top 50 altcoin futures remains below levels seen before the 2022 crypto bear market bottom. This highlights the severity of the altcoin drawdown. Therefore, the coming weeks will be critical for altcoin performance.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.