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.

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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.

The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.

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