Key points:
Bitcoin remains volatile as Wall Street opens, with $110,000 back in view.
Liquidity conditions tighten around the price as reclaiming the 21-week moving average becomes crucial.
Gold prices drop after a challenge to all-time highs.
As Bitcoin (BTC) buyers and sellers clashed at Tuesday’s Wall Street open, gold experienced a significant decline.
Bitcoin rebounds after CME futures gap challenge
Data from Cointelegraph Markets Pro and TradingView showed increasing volatility in BTC prices.
After a drop toward the weekend gap in CME Group’s Bitcoin futures market—without filling it—BTC/USD reversed direction, surpassing the $110,000 threshold.
The pair navigated changing liquidity conditions on exchange order books, with bids and asks fluctuating as participants sought to sway price movements.
Monitoring resource CoinGlass showed overall liquidity thickening around the spot price.
“It’s been a while since liquidations appeared like this, with funding rates in negative territory,” trader Luca noted in a post on X.
The post highlighted funding rates across derivatives exchanges, indicating a risk-off sentiment among traders, with expectations of more downside ahead.
Luca and others pointed out a significant price “magnet” represented by asks at $116,000 and above.
Trader and analyst Rekt Capital identified the 21-week exponential moving average (EMA) as a key resistance level that bulls need to overcome.
“At the moment, Bitcoin is facing resistance at the 21-week EMA (green), pushing the price back into the historical demand zone (orange),” he remarked alongside a chart.
“Bitcoin must maintain the orange zone as support to not only preserve a potential early-stage Higher Low but also to position itself for a reclaim of the 21-week EMA.”
Gold faces “double top” as daily drop exceeds 5%
Volatility extended beyond crypto markets on this day.
Related: Ethereum struggles once more above $4K as traders express frustration with shakeouts
Gold, which had hit all-time highs recently, now risks a “double top” bearish reversal after suffering daily losses exceeding 5.5%.
$GOLD. Will the EQH form a Double Top? If so, the target is approximately 4K. pic.twitter.com/qlh7qm2x21
— HTL-NL 🇳🇱 (@htltimor) October 21, 2025
James Stanley, a senior strategist at Forex.com, predicted a retest of $4,000 if the pattern plays out.
“If the neckline breaks and price moves as projected, that would indicate a 4k test,” he informed his X followers as part of his latest analysis, featuring Fibonacci retracement levels.
Trader Crypto Tony suggested that Bitcoin and altcoins could ultimately benefit from a slowdown in gold’s historical bull run.
“Riskier asset classes tend to dominate during uncertain times, and GOLD is at the top of this chain,” he posted on X, attributing crypto underperformance to gold.
“Once this pullback occurs, anticipate a surge in Crypto.”
This article does not constitute investment advice or recommendations. All investments and trading moves involve risks, and readers should conduct their own research before making decisions.
