BTC Technicals Show Key Support Holding Strong After Sharp Recovery
Bitcoin (BTC) surged above $110,000 on October 20, reclaiming a crucial resistance zone after a volatile week that saw the broader crypto market shaken by liquidations and macro uncertainty. The move marks a strong recovery from last week’s lows near $105,000, signaling renewed optimism among traders despite global headwinds.
According to market data, Bitcoin climbed 1.6% in the past 24 hours to trade near $110,476, consolidating within a key technical zone highlighted between $108,000 and $114,000. This area has historically acted as a decisive range, where bulls and bears have battled for directional control.
The latest daily chart shows BTC bouncing sharply from the green support zone around $104,000—a level that coincides with previous accumulation phases from June and July. Analysts suggest this bounce confirms a higher low formation, a bullish sign indicating that buyers are stepping back in after last week’s liquidation-led crash.
“Bitcoin’s ability to reclaim $110K after the liquidation wave reflects strong institutional demand and market resilience,” said BITX market analyst. “If price holds above this region for the next few sessions, a retest of $118K–$120K becomes increasingly likely.”
Technical Indicators Point to Uptrend Recovery
Momentum indicators, including the Relative Strength Index (RSI), show a shift from oversold territory toward neutral levels, suggesting that selling pressure has eased. Meanwhile, trading volume remains consistent, indicating that the recovery is supported by genuine buying rather than short covering alone.
The next resistance zone sits around $120,000–$124,000, marked by the red supply block from late September. A breakout above this area could open the path toward retesting the $127,000 all-time high recorded earlier this month.
“As long as BTC stays above $106K, the technical structure remains bullish,” explained BITX derivatives strategist. “Traders should watch for confirmation above $114K to validate continuation toward $120K.”
The broader crypto market remains cautious amid ongoing macro pressures, including U.S.–China tariff tensions and fluctuating bond yields. However, Bitcoin’s latest rebound above $110K underscores growing investor confidence and a potential shift back toward bullish momentum heading into the final weeks of October.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.