Bitcoin has regained ground above $110,000, signaling a potential rebound after last week’s intense market correction.
The flagship cryptocurrency is currently trading at $110,838, up nearly 3% in the past 24 hours, with a market capitalization hovering around $2.2 trillion.
This recovery comes after Bitcoin briefly dipped below $107,000 amid one of October’s sharpest flash crashes. Analysts say the move could mark the start of a broader reversal if buyers can sustain momentum above key resistance levels.
Analysts Expect Break Toward $120K
Crypto trader Michaël van de Poppe described the current setup as a “great period for Bitcoin,” noting that after the flash crash and retest of the lows, BTC is now “grinding upwards again.” He highlighted the $111,000-$112,000 zone as a crucial resistance area that, if cleared, could pave the way toward $120,000 in the coming sessions.
Technical indicators on the daily chart show encouraging signs. The Relative Strength Index (RSI) has bounced from oversold territory toward the mid-40s, while the MACD is showing early signs of a bullish crossover – suggesting that momentum could continue building if volume remains strong.
Traders Monitor Liquidity Zones
Data from Coinglass reveals large liquidity clusters between $111,000 and $120,000, indicating potential for a short squeeze. According to market analyst Crypto Rover, “Bitcoin short squeeze seems possible,” as liquidation heatmaps show leveraged short positions stacked above current price levels.
If Bitcoin breaks above $112,000, these short positions could be forced to cover, accelerating upward movement. However, failing to hold above $110,000 may trigger renewed selling pressure and a retest of $107,000 support.
Market Outlook
Bitcoin’s 7-day performance remains slightly negative, down around 3.5%, but the recovery momentum suggests growing confidence among traders after last week’s record liquidations. With more than $59 billion in 24-hour trading volume, volatility remains high as investors reposition for the next leg.
The market’s next test lies in overcoming resistance around $112,000-$115,000. A breakout above this level could confirm bullish sentiment and set the stage for another push toward $120,000, while a rejection could keep Bitcoin consolidating within the $107,000-$111,000 range.
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Source: https://coindoo.com/market/bitcoin-reclaims-110000-as-traders-eye-possible-short-squeeze/