Highlights:
Bitcoin market analysis indicates a movement towards $114,000 as the weekly close approaches.
Traders are optimistic about a BTC price recovery for the upcoming week.
The Bitcoin bullish trend may continue despite the $19 billion liquidation spike.
Bitcoin (BTC) hovered around $112,000 into Sunday’s weekly candle close as traders anticipated a potential BTC price rebound.
Bitcoin liquidation “fishing” approaching weekly close
Data from Cointelegraph Markets Pro and TradingView showed a decrease in volatility following a $19 billion crypto liquidation event.
BTC/USD did not stage a significant recovery, but market participants believe that next week may yield better results.
“I can see a scenario for a relief bounce heading into the weekly open / futures open,” trader Skew shared in his latest commentary on X.
“Both aspects contribute significant flows given the current macro backdrop. Plus, the market is thin at the moment, so exercise caution with margin positions, particularly in altcoins.”
Another trader, HTL-NL, noted that while the market remains unpredictable, the chances of a severe downturn are low.
“You can’t predict what the weekly close and next week will bring, especially since the legacy market had little time to react to Trump,” he told his followers on X.
“However, I’m not too concerned. A correction was already anticipated, but it became amplified, leading to a system breakdown.”
Trading resource TheKingfisher pointed out a potential liquidity hunt around the $114,000 mark, as traders held substantial short positions on BTC.
“Weekends often involve $BTC range liquidations fishing,” it noted alongside proprietary market data.
Analyst on BTC bull market: “Bearish scenarios are possible”
Caleb Franzen, founder of financial research platform Cubic Analytics, expressed even greater optimism.
Related: Bitcoin’s ‘macro whiplash,’ Shuffle suffers data breach: Hodler’s Digest, Oct. 5 – 11
In his latest Substack entry, he analyzed Bitcoin’s behavior concerning its simple (SMA) and exponential (EMA) 200-day moving average.
“Prices could potentially decline further from this point,” he suggested.
“Like the consolidation periods of August-September 2023, July-September 2024, and February-April 2025, a short-term drop below the 200-day MA cloud before a recovery and trend continuation to new heights would be quite normal.”
Nevertheless, BTC/USD has the potential to form a higher low on daily charts—something Franzen believes would maintain the uptrend.
“If uptrends are defined by a series of higher highs & higher lows, then this consolidation does not invalidate the uptrend,” he stated.
“While we must recognize that bearish occurrences can take place during uptrends, as shown this past week, it’s equally essential to acknowledge that a bearish stance during an uptrend is a sure way to incur losses and/or underperform.”
This article does not provide investment advice or recommendations. All investment and trading activities carry risks, and readers should conduct their own research prior to making decisions.
