Bitcoin Struggles at $108,000 After Brief Recovery Fails
The cryptocurrency market remains under pressure as Bitcoin hovers near $108,000 after a short-lived recovery attempt. Recent gains evaporated quickly on October 21, leaving traders concerned about the persistent weakness driven by ongoing US-China trade tensions.
Bitcoin Price Shows Brief Recovery Before Falling Again
Bitcoin attempted a modest rebound earlier this week, climbing from weekend lows around $107,000. The cryptocurrency fell to weekly lows near $107,460 on Tuesday, erasing its early rebound as cautious sentiment returned to markets.
Bitcoin fell 1.35% to around $108,000 on October 22, demonstrating continued vulnerability to macroeconomic pressures. The flagship cryptocurrency reached record highs above $126,000 in early October before experiencing one of its steepest corrections in history.
Market participants remain nervous about sustainability. Trading volumes have stayed thin during the recovery attempts, suggesting limited conviction among buyers at current levels.
US-China Trade Tensions Continue Weighing on Bitcoin Markets
The crypto market slipped sharply on Tuesday amid renewed US-China trade tensions as Trump threatened the upcoming meeting with Chinese President Xi Jinping “may not happen”, erasing recent gains. This follows President Trump’s earlier announcement of potential 100% tariffs on Chinese goods after China imposed export controls on rare earth metals.
The escalating trade war triggered massive liquidations across cryptocurrency exchanges. The market witnessed approximately $19 billion to $20 billion in leveraged long positions being liquidated, marking one of the largest deleveraging events in digital asset history.
Traditional markets also suffered significant losses. The Nasdaq Composite dropped over 3.5% while the S&P 500 posted its worst day since April, showing Bitcoin’s continued correlation with risk assets during geopolitical stress.
Bitcoin Remains Low Despite Multiple Recovery Attempts
Bitcoin price stabilized near $108,000-$110,000 after a sharp sell-off, showing a measured recovery from the $107,400-$108,000 support zone. Buyers defended the 200-day moving average around $108,100, preventing deeper losses. However, sustained buying momentum has failed to materialize.
The Layer-2 sector led losses with a 5.15% decline, while Ethereum slid 1.99% below $3,900, reflecting broad weakness across digital assets. Most major cryptocurrency sectors posted declines exceeding 1.5%, demonstrating weakening market sentiment.
Technical analysts identify critical resistance levels ahead. Breaking above $114,500-$115,000 would confirm reclaiming bullish structure, potentially opening doors toward $118,000-$120,000. Conversely, losing $108,000 support could trigger retests of $106,000-$104,800.
Market Sentiment Remains Bearish Amid Uncertainty
The Fear & Greed Index reads Extreme Fear at 22, signaling a deeply negative investor outlook. Bitcoin shows 76% of indicators favoring a negative prediction, leading to an overall Bearish sentiment.
Despite the correction, certain data points suggest accumulation. On-chain metrics show smaller Bitcoin holders (1-1,000 BTC) have been net buyers since early October, viewing current prices as attractive entry points for long-term positions.
Institutional interest provides some stability. On October 21, the Federal Reserve announced new payment rail access for crypto firms, improving institutional adoption prospects. Spot Bitcoin ETF flows have shown signs of stabilization after heavy redemptions during the crash.
October Becomes Worst Performance Month Since 2015
Bitcoin is down 5% month-to-date, experiencing its worst October since 2015. This performance sharply contrasts with historical patterns. October typically delivers strong rallies for Bitcoin, with historical averages around 19.8% gains.
The breakdown of this seasonal pattern concerns traders. Crypto markets have long termed October “Uptober” due to consistent positive performance. This year’s reversal suggests powerful external forces overriding typical market dynamics.
November is historically Bitcoin’s strongest month, with average gains around 42%. Whether traditional seasonality reasserts itself depends heavily on the resolution of trade tensions and macroeconomic conditions.
Bitcoin Price Outlook Hinges on Key Support Levels
If Bitcoin maintains support above $108,000, the price could climb to $115,000-$118,000 by the first week of November. This scenario requires sustained buying momentum and easing geopolitical tensions.
Analysts noted bulls need to hold the $107,000 level to avoid signaling further weakness. Breaking this support could trigger deeper pullbacks toward psychological levels at $100,000. Some technical models suggest potential declines toward $95,000 if selling accelerates.
Market watchers emphasize the importance of volume confirmation. Low-volume bounces suggest corrective moves rather than genuine trend reversals, leaving Bitcoin vulnerable to renewed selling pressure.
Conclusion
Bitcoin continues struggling near $108,000 after brief recovery attempts failed to gain traction. US-China trade tensions remain the primary catalyst for weakness, with uncertainty preventing sustained rallies despite attractive valuations for long-term holders.
