On October 31, 2025, Bitcoin experienced a sharp decline, breaking below the $108,000 support level and touching lows near $106,200. This plunge was part of a significant market correction that has shaken investor confidence and led to substantial liquidations, yet it also presents potential opportunities for recovery.
Understanding the Market Shake-Up
The late-October sell-off was severe, with Bitcoin falling from its all-time high of over $126,000 to briefly trade below $105,000, erasing nearly $370 billion from the total crypto market capitalization. This move was part of a larger liquidation cascade; in a single 24-hour period, over $19 billion in leveraged positions were wiped out, the largest single-day wipeout in crypto history.
This downturn was primarily triggered by escalating geopolitical tensions. A surprise announcement of 100% tariffs on Chinese imports created panic among investors, who rushed to sell their positions. The resulting market thinness and overleveraging amplified the losses, causing a domino effect across the market.
Signals of a Potential Rebound
Despite the fear, several technical and on-chain indicators suggest the market purge may be creating a foundation for the next upward move.
From a technical perspective, the price action has formed what appears to be an inverse head-and-shoulders pattern, which often precedes a rebound. Furthermore, the RSI momentum oscillator has shown a bullish divergence, signaling that selling momentum was stabilizing even as the price fell.
On-chain data reveals that the market flush successfully cleared out “weak hands”. The Net Unrealized Profit and Loss (NUPL) metric fell to six-month lows, indicating a cleansing of speculative excess. Interestingly, the sell-off also coincided with unusual activity from long-dormant wallets, with some moving large amounts of Bitcoin after years of inactivity. However, there were no immediate signs of mass selling from these holders, suggesting accumulation by larger players was underway.
A Trader’s Outlook and Key Levels to Watch
For traders and treasury desks, the immediate focus is on specific price levels that will dictate the market’s next major directional move. The current consolidation is critical, and all eyes are on the $111,000–$111,400 zone as the key area of control.
A sustained move above this resistance could trigger a relief rally toward $112,500, potentially invalidating the near-term bearish outlook. Conversely, if this level is rejected and Bitcoin fails to hold the $108,000 support, the price could be at risk of a deeper correction toward $105,000 or even the $97,500 area.
This volatile period underscores the importance of disciplined risk management. The market has shown its capacity for both dramatic downturns and resilient recoveries. Navigating the weeks ahead will require careful attention to both technical structure and the underlying flows of institutional capital.
