Bitcoin News Today: Bullish Bets Clash with Bearish Signals as Bitcoin Tests $107K Threshold

Bitcoin's recent volatility has sparked debate among traders and analysts, with the cryptocurrency hovering near critical support levels that could determine its near-term trajectory. Despite a 2.5% drop to $107,460 on October 21, market participants remain divided on whether the asset is consolidating or entering a deeper correction. Galaxy Digital, a leading crypto investment firm, has maintained a bullish stance, though it warns that key technical thresholds could trigger renewed selling pressure, according to a CryptoNews report.

The current price action reflects broader uncertainty as traders assess the impact of reduced institutional inflows and shifting macroeconomic conditions. Bitcoin's decline has drawn attention to a partially unfilled CME futures gap near $107,390, a level that traders like Daan Crypto Trades emphasize as crucial for bulls to defend, the CryptoNews piece notes. "If we fail to hold $107K, it could signal further weakness and push the price toward $100K–$98K," Daan noted. Meanwhile, the $110K gap closed last week, offering a mixed signal for momentum, the same CryptoNews coverage added.

Institutional activity, however, suggests continued confidence in Bitcoin's long-term potential. BlackRock's recent deposit of 2,854 BTC ($314 million) and 29,639 ETH ($115 million) into Coinbase Prime underscores sustained demand from large asset managers, as reported by Coinotag. This follows a broader trend of corporate treasuries accumulating Bitcoin, with holdings now exceeding 1 million BTC. Analysts argue that these reserves, valued at nearly $95.85 billion, will keep supply constrained even as quarterly inflows decline, according to FXStreet analysis.

Galaxy Digital's recent earnings report has further fueled optimism. The firm's stock (NASDAQ: GLXY) surged over 10% following a $505 million profit in Q3 2025, driven by a record $9 billion Bitcoin transaction for a long-term investor, per a TS2 Tech article. CEO Mike Novogratz attributed the success to institutional adoption and regulatory clarity, with Galaxy securing a $460 million investment from a major asset manager to fund its AI-focused Helios data center project.

Yet technical indicators paint a more cautious picture. Bitcoin's failure to reclaim the 200-day EMA at $108,062 has intensified bearish sentiment, with the RSI and MACD indicators signaling downward bias, as noted in an FXStreet report. Traders like Roman caution that low-volume breakouts lack validation, increasing the likelihood of a test of the $100K level, the CryptoNews coverage also warned. This aligns with broader market jitters, as Ethereum and XRP also face bearish technical setups, with ETH slipping below key moving averages and XRP forming a death cross, the same FXStreet piece observed.

The ETF landscape adds another layer of complexity. While BlackRock's IBIT ETF hit $88 billion in assets under management, Bitcoin ETFs recorded $40.47 million in outflows on October 20, reflecting profit-taking, according to a CoinPedia report. Conversely, Ethereum ETFs saw $145.68 million in outflows, signaling waning confidence in altcoins. Institutional investors, however, continued to diversify into Ethereum, Solana, and XRP, pouring $434.9 million into those assets in a single week, per a DailyHodl report.

Market observers remain split on Bitcoin's path forward. Karim AbdelMawla of 21Shares advises retail investors to "buy dips and hold through cycles," emphasizing Bitcoin's strategic value as a treasury asset, as detailed in a Bitcoin.com post. Meanwhile, Galaxy's Novogratz highlights macroeconomic tailwinds, including potential Federal Reserve rate cuts and a possible Bitcoin ETF approval, as catalysts for a new bull cycle — points he discussed in the TS2 Tech article.

As Bitcoin consolidates between $107K and $110K, the coming weeks will test the resilience of its bull market. Analysts agree that institutional demand and regulatory developments will play pivotal roles, but for now, traders are bracing for a volatile outcome.