Bitcoin (BTC/USD) continues its recovery after completing a 5-wave bearish sequence that bottomed near $103,510. The October 2025 flash crash, which was triggered by geopolitical tensions and a surprise 100% U.S. tariff on Chinese imports, has wiped out over $500 billion in crypto market cap, marking one of the most severe single-day liquidations in crypto history. Since then, Bitcoin has rebounded sharply, with Asian session buying reinforcing bullish sentiment and price action now approaching a prior swing high at $111,700.
Crypto market context: Crash, reset and rebound
The October crash acted as a structural reset for Bitcoin, normalising key metrics like the MVRV ratio and reducing profit-holding addresses from 91% to 83%. Stablecoins also faced pressure, with USDe depegging by 38% in the face of liquidity stress.
However, institutional inflows have since returned, with over $14.2 billion entering Bitcoin ETFs, and long-term holders now account for 45% of total supply, which is a sign of growing confidence.
Bitcoin dominance and the altcoin rotation
As Bitcoin stabilised and pushed near $112K, its dominance peaked, prompting capital rotation into altcoins. Analysts now anticipate a year-end altcoin surge, with some tokens already posting 30% to 50% rebounds from October lows. Ethereum, Solana, and other Layer 1s have begun to outperform, suggesting the early stages of an “altcoin season” as traders diversify beyond Bitcoin.
Technical analysis: Bitcoin eyes key resistance
BTC/USD is currently approaching resistance at $113,860, with bullish momentum intact. A break above this level could open the path toward $114,900 and potentially higher. On the downside, rejection at resistance may trigger a pullback toward the zone between $110,000 to $108,000, with bespoke support at $106,600 offering a key re-entry zone.
- Resistance: $113,860 and $114,900
- Support: $106,600, $108,000 and $110,000
- Bullish setup: Buy dips toward $106,600 with stops below $105,800. Target $113,860 and $114,900.
- Bearish setup: Short on rejection near $114,900, targeting between $110,000 and $108,000.
- Range play: Trade within $106,600 and $114,900 until breakout confirms direction.
Momentum builds but volatility remains
With Bitcoin reclaiming key levels and altcoins gaining traction, sentiment has shifted from panic to cautious optimism. Traders should monitor ETF flows, macro headlines, and volume confirmation around resistance zones. While the bullish structure remains intact, volatility is likely to persist as markets digest the fallout from the October crash and prepare for year-end positioning.
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