Important Highlights:
Bitcoin’s price remains subdued after a drop of over 4% within hours.
Liquidity is on the rise again, with increased likelihood of short-term volatility.
Predictions for BTC price suggest a potential local bottom around $114,000.
Bitcoin (BTC) faced challenges in surpassing $122,000 on Wednesday, as traders anticipate renewed volatility in BTC prices.
Bitcoin Moves Sideways After All-Time High Drop
According to data from Cointelegraph Markets Pro and TradingView, BTC/USD is experiencing a consolidation phase following a sharp 4.2% correction the day prior.
This correction was widely anticipated, given the series of all-time highs without substantial upward momentum.
As Cointelegraph highlighted, the rapid increase of open interest (OI) in derivatives markets raised concerns over a possible retracement of Bitcoin’s recent gains.
Trader Skew remarked on an X post Tuesday that the price movement had been “very efficient,” explaining the low volatility observed so far.
Skew later noted the “predatory” tactics employed by large-volume traders in the exchange order books.
Clear PvP -> Predatory price action ongoing here via binance market on $BTC
spoofing on the ask aka above price on spot
spoofing on the bid aka below price on perpsHow the predatory strategy works?
The goal is to briefly hold or elevate price via perps & then lower the market by…— Skew Δ (@52kskew) October 7, 2025
However, overnight, liquidity started returning to the market, with data from CoinGlass indicating increasing bid-side and ask-side liquidity as of this writing.
Skew pointed out that a potential “consolidation range” might emerge.
Focus Shifts to $114,000 BTC Price Support
Others are examining where BTC/USD could establish a solid local support, cautioning that it might be significantly beneath the current spot price.
Related: Chances for BTC Price Breakout in October Are Low: 5 Insights on Bitcoin This Week
“Between $121K and $120K, there’s minimal support, meaning the price can drop quickly if sell-off intensifies,” trader ZYN noted on X.
“Just below that, around $117K, nearly 190K BTC were recently purchased. That represents a significant cluster of buyers.”
ZYN utilized recent buyers’ cost basis to predict where demand might stabilize the price.
“If we see a pullback into that area, it’s the kind of zone where strong buyers typically defend their positions, with new capital entering. In essence: weak support at $121K, but a genuine floor forming at $117K,” he concluded.
Using proprietary trading signals, trading platform Material Indicators also highlighted $120,000 as a support level, suggesting that a stronger base for a bounce is found at $114,000, near Bitcoin’s 50-day simple moving average (SMA).
According to crypto trader, analyst, and entrepreneur Michaël van de Poppe, the next buying opportunity extends down to $118,000.
“Bitcoin set a new all-time high, which often prompts people to take profits,” he explained.
“Slight pullback and we’re nearing my personal target area for potential buying opportunities.”
This article does not provide investment advice or recommendations. Every investment and trading decision carries risk, and readers should undertake their own research before making decisions.
