Key Insights
- Bitcoin is forming higher lows near a buyer absorption base above the 300-day SMA where it is consolidating after the October corrections.
- The MACD has made a bullish crossover and RSI has recovered from oversold levels indicating easing downward momentum.
- Institutional and retail participants remained active between $108K–$110K marking it as a zone of interest.
Bitcoin is hovering above the 300-day Simple Moving Average at around $103,000.This level has supported the bull run multiple times, therefore the current test is crucial for traders to determine if the trend will continue.
BTC Retests Long-Term Trend Support
Bitcoin’s 300-day SMA level that has acted as long-term support since the start of the bull trend. Repeated rebounds from this zone continue to influence the wider market trend.
Each time Bitcoin has tested this level, it has bounced higher and formed a steady upward trend as buyers stepped back in and eased selling pressure.
The 300-day SMA shifted sharply upward as pullbacks touched the moving average.Each correction was absorbed quickly cementing this as a strong demand around the trend base.
Source BitCoinsensus Via X
Short-Term Charts Show Stabilization After Capitulation
On the 4-hour chart, Bitcoin attempts to stabilize after a sharp capitulation event in mid-October. The price drop was followed by heavy volume which led to the formation of a temporary base between $105,000 and $108,000.
The MACD line bullish crossover is a signalling easing bearish pressure. However, the market has not yet formed a clear directional trend.
The RSI has moved from extreme oversold readings near 20 into the mid-50s neutral conditions as short-term futures remain under pressure.
October futures slipped on Tuesday after Monday’s recovery, and analysts noted ongoing technical damage. Wyckoff’s Market Rating stands at 2.0, indicating strong bearish control in the near term.
Mixed Reaction as Traders Watch the $108K–$110K Zone
Market participants were very active near $108,890 and red arrows show multiple rejections below $108,000. Green arrows around this area mark failed breakout attempts toward $110,000.
Sentiment in the market is divided. Some analysts are bullish that a break above $110,000, with some aiming for targets near $150,000.Bitcoin needs to hold its current support level to stay stable.
Many market participants were active between $108,000 and $110,000 due to participation from both institutional and retail traders. The RSI is at 48 and the MACD is bearish which leaves room for a possible short-term bounce.
CryptoDanJohn warned that Bitcoin could face a larger drop if it loses hold of this zone. He cited the falling RSI and broader economic factors—such as interest rate decisions and inflation data that are influencing the market. They could shift liquidity from altcoins into Bitcoin.
