Bitcoin News Today: Bitcoin's $110K Support: Rebound or 30% Collapse?

Bitcoin's (BTC) recent price action has sparked renewed debate among analysts, with the cryptocurrency hovering near critical support levels that could determine the trajectory of its ongoing bull run. After a sharp correction that saw prices dip below $110,000-a level that has historically acted as both a support and resistance-traders are closely monitoring whether BTC can reclaim its footing to sustain the momentum of its so-called "Uptober" rally.

The $110,000 threshold has been a focal point in 2025, with prior rejections triggering 19–30% declines, while successful rebounds have fueled 12–15% rallies. Current onchain and technical indicators suggest a mid-cycle reset rather than a full trend reversal, but the risk of further downside remains. If the support fails, analysts project a potential drop to $96,500–$100,000, with a worst-case scenario targeting $74,000 .

Technical analysis highlights a broadening wedge pattern on the BTC/USD weekly chart, with historical corrections often finding a floor near the $100,000–$103,000 range. This zone aligns with Bitcoin's 50-week exponential moving average and a 1.618 Fibonacci retracement level, reinforcing its significance as a potential target . Meanwhile, Glassnode's MVRV Extreme Deviation Pricing Bands indicate that BTC is currently trading below its +0.5σ band, suggesting a mean reversion toward $96,500. A similar correction occurred in late 2024, when prices fell from the +0.5σ level to the mean band before resuming an upward trend .

The recent selloff, which erased $19.37 billion in leveraged trades within 24 hours, has also drawn attention to Bitcoin's resilience. Despite a 4.65% drop to $110,000 following U.S.-China trade tensions, BTC has shown signs of stabilizing. Analysts like Rekt Capital argue that Bitcoin's price action aligns with a recurring "breakout-retest" cycle, where consolidation phases after major resistance breaks often precede renewed upward momentum . This pattern is currently playing out as BTC holds above $116,000, with a successful retest of this level expected to clear the path for a move toward $120,000 and beyond .

Institutional demand and macroeconomic factors further complicate the outlook. BlackRock's spot Bitcoin ETF, now approaching $100 billion in assets under management, has become a key driver of inflows, with some estimates suggesting an additional $20 billion could flow into crypto ETFs before year-end . Meanwhile, the U.S. government shutdown has delayed potential approvals for new crypto ETFs, adding uncertainty to the market.

Ethereum (ETH), the second-largest cryptocurrency, has also faced volatility but appears to have found short-term stability around $3,825 after a brief dip to $3,500 . Technical indicators, including a bull flag pattern on the daily chart, suggest ETH could rebound to $4,500–$5,766 if support holds. Analysts like Peter Brandt remain bullish, noting that both BTC and ETH have outperformed many altcoins during the recent selloff .

The broader market context includes U.S.-China trade tensions and the Federal Reserve's policy outlook. A potential 25-basis-point rate cut later this month could reignite bullish sentiment, with Polymarket odds currently pricing in a 90% probability of such a move . However, persistent strength in the U.S. dollar and Treasury yields-fueled by global bond market uncertainties-remain headwinds for risk assets .

[1] How Low Can Bitcoin Price Go If $110K BTC Support Fails? (https://cointelegraph.com/news/how-low-can-bitcoin-price-go-if-dollar110k-btc-support-fails)

[2] Crypto Selloff: Is A BTC And ETH Comeback Ahead? - 99Bitcoins (https://99bitcoins.com/news/altcoins/livecan-btc-and-eth-rebound-after-a-19b-liquidation-storm/)

[3] Crypto Price Analysis 10-13: BITCOIN: BTC, ETHEREUM: ETH, ... (https://cryptodaily.co.uk/2025/10/crypto-price-analysis-10-13-bitcoin-btc-ethereum-eth-solana-sol-polkadot-dot-jupiter-jup)

[4] Will Crypto Recover in October? BTC USD Reclaims $110K as ... (https://finance.yahoo.com/news/crypto-recover-october-btc-usd-105600589.html)

[5] 'Cascade' Price Warning Puts Bitcoin On The Brink ... (https://www.forbes.com/sites/digital-assets/2025/10/10/blown-away-bitcoin-braced-for-a-100-billion-blackrock-earthquake-as-wild-price-swings-rock-crypto/)

[6] Bitcoin Price Breakout Raises New Questions: $124K or $171K? (https://www.ccn.com/analysis/crypto/bitcoin-price-btc-above-120k-breakout-revives-ath-2025/)

[7] Bitcoin's Volatility Sparks Debate: Key Levels in Focus (https://thefinancialanalyst.net/2025/10/15/bitcoins-volatility-sparks-debate-key-levels-in-focus/)

[8] Bitcoin (BTC) Breaks $117K: 95% of Supply in Profit Signals ... (https://blockchain.news/flashnews/bitcoin-btc-breaks-117k-95-of-supply-in-profit-signals-euphoria-and-profit-taking-risk-glassnode-on-chain-alert)

[9] Bitcoin (BTC) Price Prediction: $118K Ahead? - CoinDesk (https://www.coindesk.com/markets/2025/10/07/onwards-and-upwards-for-bitcoin-as-move-melts-down-dollar-and-bonds-signal-caution-to-risk-assets)

[10] Bitcoin Consolidates at $108K: Analysts Eye Massive ... (https://www.fxleaders.com/news/2025/05/29/bitcoin-consolidates-at-108k-analysts-eye-massive-rally-to-330k-peak-by-2025/)

[11] Rekt Capital Decodes the Simple Cycle That Is Fueling Bitcoin's Rally (https://www.bitgetapp.com/news/detail/12560604862247)

[12] Rekt Capital: One Pattern Driving This Entire Bitcoin Bull Run (https://coinedition.com/rekt-capital-bitcoin-repeating-pattern-decoded/)