Highlights:
Bitcoin price remains subdued after a drop exceeding 4% within hours.
Liquidity is improving, increasing the likelihood of short-term volatility.
BTC price forecasts indicate a potential local bottom around $114,000.
Bitcoin (BTC) faced challenges in regaining $122,000 on Wednesday as exchange users anticipated new volatility in BTC prices.
Bitcoin holds steady after all-time high decline
Data from Cointelegraph Markets Pro and TradingView revealed BTC/USD consolidating after a quick 4.2% correction the day before.
This adjustment was widely expected, considering the series of all-time highs without substantial upward momentum.
As reported by Cointelegraph, a rapidly growing open interest (OI) in derivatives markets raised suspicions about Bitcoin’s potential to retract some of its recent gains.
“Price action has been quite efficient, leading to low volatility so far,” trader Skew remarked in an X post on Tuesday as the correction unfolded.
Skew later pointed out “predatory” actions by high-volume traders in exchange order books.
Clear PvP -> Predatory price action currently observed via Binance market on $BTC
spoofing on the ask above the spot price
spoofing on the bid below the price on perpsWhat is the predatory strategy?
The aim is to momentarily push or hold price via perps & then drive the market down by…— Skew Δ (@52kskew) October 7, 2025
However, overnight, liquidity began to return to the market, with data from CoinGlass indicating a strengthening of bid and ask-side liquidity at the time of writing.
Skew indicated that a “consolidation range” might develop.
BTC price support revisits $114,000 target
Analysts examined where BTC/USD might establish a reliable local floor, cautioning that this could be substantially below the current spot price.
Related: BTC October price breakout odds low: 5 things to know about Bitcoin this week
“Between $121K and $120K, there is minimal support, meaning prices could decline swiftly if selling increases,” trader ZYN noted on X
“However, just below that, around $117K, approximately 190K BTC were last bought. That’s a significant cluster of recent buyers.”
ZYN utilized the cost basis of recent purchasers to predict potential demand zones for price stabilization.
“If we experience a pullback into that range, it’s typically where we see strong demand from buyers defending their positions and new capital entering the market. In summary: weak support at $121K, but a tangible floor forming at $117K,” he concluded.
Using proprietary trading signals, trading platform Material Indicators also highlighted $120,000 as a support level, but indicated a more robust base for a bounce lies at $114,000, close to Bitcoin’s 50-day simple moving average (SMA).
For crypto trader, analyst, and entrepreneur Michaël van de Poppe, the next buying zone stretches down to $118,000.
“Bitcoin achieved a new all-time high, which often prompts traders to take profits,” he explained.
“A slight pullback, and we’re nearing my preferred zone for potential dip buying.”
This article does not provide investment advice or recommendations. All investments and trading activities involve risk, and readers should conduct their own research before making any decisions.
