The price of Bitcoin remains stable at around $111,000 following a period of volatility, yet analysts from TD Cowen forecast that it could reach $141,000 by December.
In a report issued on Monday, the firm pointed out that the recent crash and subsequent recovery in the crypto market exemplify the resilience of both Bitcoin and the broader crypto landscape.
This month’s flash crash led to approximately $19 billion in liquidations, marking the largest single-day event in crypto history. Despite the enormous sell-off, TD Cowen highlighted that the majority of exchanges continued to function with minimal interruptions, showcasing the market’s ability to withstand shocks, according to reporting by The Block.
The downturn was initially triggered by U.S. President Donald Trump’s announcement of a 100% tariff on Chinese imports, causing the overall crypto market to dip by more than 10%.
While lesser-known tokens experienced significant losses, major digital currencies like Bitcoin fared relatively well — it dipped 15% briefly but ended the day down just 8%.
“Although this was the largest single-day liquidation ever, with open interest halved across platforms, the majority of crypto exchanges continued to operate with little to no downtime,” the note stated.
Global Bitcoin Adoption
TD Cowen’s analysts attribute this situation not only to market resilience but also to a growing global embrace of cryptocurrencies. For example, in Japan, the number of registered accounts holding digital assets has increased fourfold over the last five years, surpassing 7.9 million.
This surge in adoption has led Japan’s Financial Services Agency to reassess its long-held restrictions on banks investing in digital assets, including Bitcoin.
Bitcoin has climbed back to about $111,000 today after dipping into the $104,000 range last week, buoyed by renewed corporate accumulation and optimism regarding a potential resolution to the U.S. government shutdown, which has enhanced market sentiment.
Bitcoin ended September around its current price range, but prior to the flash crash, it reached all-time highs in early October.
Bitcoin Price in a Stalemate
Analysts indicate that critical resistance levels for Bitcoin now stand at $112K, $115.5K, and $117.6K, with a decisive break above $122K necessary to pivot the bias back toward bullish sentiments. Conversely, support below $105K could falter, though stronger support is expected around $98K–$96K.
The upcoming week might bring a slight rebound, but failing to maintain levels above $106.9K could pave the way for prices under $100K, particularly if the FOMC does not implement a substantial rate cut.
