Bitcoin News Today: Bitcoin's $110K Crossroads: Breakout or Bearish Backslide?

Bitcoin's price has entered a critical standoff near $110,000, with market participants divided over whether the asset will break through key resistance levels or retreat into a deeper correction. After the Federal Reserve's 25-basis-point rate cut in late October, which brought benchmark rates to 4%, Bitcoin initially surged to $113,000 but has since stalled, reflecting broader indecision in risk markets. Analysts and traders are closely monitoring the interplay between macroeconomic signals, technical indicators, and institutional sentiment to gauge the next move.

The Fed's dovish pivot, widely anticipated ahead of its October 28-29 meeting, initially bolstered Bitcoin as investors bet on weaker dollar dynamics and lower borrowing costs. However, the market's muted response to the cut—coupled with liquidations totaling $550 million in the 24 hours preceding the announcement—suggests waning conviction among traders. Derivatives trader Killa (@KillaXBT) warned that Bitcoin remains range-bound, with a critical test at the $108,000 support level. "A move above the CME gap could signal renewed momentum, but failure to hold $108,000 risks accelerating losses to five figures," they noted.

Technical analysis reinforces this uncertainty. Bitcoin's price action has repeatedly rejected the $112,000-$118,000 resistance zone, with the breakdown below a six-month ascending trendline signaling a lack of bullish momentum. Elliott Wave analysts project a further decline to $110,000 or even $104,000-$108,000 if selling pressure intensifies. Meanwhile, the 200-day simple moving average (SMA) offers historical support, but bearish divergence on the RSI and monthly chart patterns—similar to those observed during the 2021 peak—heighten the risk of a broader correction.

The market's indecision is also shaped by macroeconomic factors. U.S.-China trade tensions, which triggered a sharp selloff in early October, have eased, with officials from both nations signaling progress toward a tariff agreement. This optimism briefly pushed Bitcoin above $116,000 in late October, but gains have since dissipated. Institutional demand remains a wildcard: Bitcoin ETF inflows hit record highs in early October, and regulatory developments—such as the SEC's embrace of tokenized securities—have bolstered long-term bullish sentiment. Michael Saylor, co-founder of MicroStrategy, reiterated his $150,000 target, a projection also reported by BeinCrypto, citing regulatory tailwinds and growing institutional adoption.

Yet bearish risks persist. Analysts caution that a prolonged downturn could see Bitcoin fall to $70,000-$80,000 if macroeconomic conditions deteriorate. Gold advocate Peter Schiff highlighted Bitcoin's fragility as a "safe haven," noting its underperformance relative to gold and equities despite the Fed's easing stance. On-chain data adds to the caution: declining exchange balances and thinner liquidity suggest a potential pullback is in play.

The coming weeks will hinge on two key events: the Fed's policy trajectory and the resolution of U.S.-China trade tensions. A confirmed dovish pivot at the October meeting could reignite bullish momentum, while a failure to hold $105,000 support could trigger a deeper sell-off. For now, traders are adopting a wait-and-see approach, with many hedging their positions ahead of the next catalyst.