Bitcoin (BTC) started a new week in fighting form as bulls staged a rebound past $111,000.
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BTC price action improved around the weekly close as hodlers get some well-earned relief. Is a short squeeze next?
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Downside price targets remain popular, with longer time frames raising questions about the strength of the bull market.
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US CPI will sidestep the government shutdown on Friday to provide precious inflation data for the Federal Reserve.
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Risk-taking is slowly returning to crypto markets as leverage recovers, but traders are not betting on major price increases.
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Bitcoin dominance hangs in the balance as altcoins stay sidelined.
Spotlight on BTC price “upside imbalances”
Bitcoin flipped volatile into Sunday’s weekly close, capping the week at $108,600 before briefly retracing.
Data from Cointelegraph Markets Pro and TradingView showed buyer strength resurfacing into the week’s first Asia trading session, allowing a jump to $111,000.
Traders now see volatility as all but guaranteed to continue in the coming days.
In a dedicated outlook post on X, trader CrypNuevo suggested that a short squeeze may characterize the rest of October.
“Now, we can see a big cluster of short liquidations between $116k-$117k. Short squeeze coming?” he queried alongside a chart of exchange order-book liquidity.
CrypNuevo said that “upside imbalances” were the target to watch going forward.
Crypto investor and entrepreneur Ted Pillows earmarked $112,000 as an important reclaim level.
“With US-China trade tensions easing, I think BTC could rally more from here,” he told X followers.
As ever, attention was on gold and Bitcoin’s potential to follow it to new all-time highs. XAU/USD consolidated on the day after hitting a record $4,380 per ounce on Friday.
“Gold has been on an absolute tear this year. BTC has been lackluster,” trader Daan Crypto Trades wrote while looking at the Bitcoin to gold ratio.
“Especially if Gold cools off for some time, we could see some of that capital flow back into more riskier assets. Equities would be the main beneficiary. Bitcoin & Crypto would likely take a small piece of the pie as well.”
Bitcoin’s $102,000 Binance wick stays unfilled
Bitcoin still has plenty of bearish predictions following it as the Oct. 10 meltdown casts a long shadow over some traders’ market view.
Among them is trader Roman, who has been vocal about Bitcoin’s fundamental lack of strength in recent months.
BTC/USD, he argued, faces declining volume despite rising to new all-time highs. Relative strength index (RSI) values on longer time frames also indicate a bearish divergence is unfolding.
$BTC 1M
– Record high MACD
– Bear divs RSI/MACD
– Low volume + price up (bullish Price action exhaustion)
– Momentum loss
– Record high Profit takingBetter to be safe than sorry here and take profits on long term positions. The bull run won’t last much longer. pic.twitter.com/bKbdDydjG6
— Roman (@Roman_Trading) October 13, 2025
Now, a potential rebound — even as high as $118,000 — could end up as a head and shoulders trend reversal pattern.
“A break of this level would invalidate the possibility & there’s also a chance that this is just consolidation,” he told X followers last week.
As Cointelegraph reported, four-hour RSI produced a bullish divergence following the dive to $102,000 on Binance.
Despite this, expectations remain that the market will ultimately drop to “fill” that daily candle wick.
“All I see is a bearish retest and volume going down on this small move up proves that theory,” Roman wrote about the latest price move above $111,000.
“Still need to fill that wick!”
CPI due despite US gov’t shutdown
The coming week features a rare macroeconomic event that is already sparking excitement among commentators.
Amid the ongoing US government shutdown, Friday’s release of the Consumer Price Index (CPI) — a key inflation gauge — will go ahead.
“Something unusual is happening this week: On Friday, we are receiving CPI inflation data DURING the US government shutdown,” trading resource The Kobeissi Letter wrote in an X post on the topic.
Kobeissi noted that this would be the first Friday CPI release since 2018.
The timing is significant for another reason: Just five days later, the Federal Reserve will meet to decide on interest-rate changes.
Macro data prints leading up to each meeting are particularly important to officials. On this occasion, the stakes are higher than ever; the shutdown has delayed the publication of the vast majority of inflation data.
“The Labor Department has said that NO OTHER releases will be rescheduled or produced until the shutdown ends,” Kobeissi added.
“This comes during a highly pivotal time for the Fed…
cointelegraph.com