Bitcoin’s price action turned volatile at Tuesday’s Wall Street open, with bulls and bears clashing for control just as gold faced a steep correction.
Bitcoin rebounds after testing CME gap
Charts from TradingView showed renewed turbulence in Bitcoin’s price movements. After sliding close to the CME Group’s weekend futures gap—but without fully filling it—BTC/USD bounced back above $110,000.
Market activity reflected a tug-of-war in liquidity, as both buy and sell orders shifted rapidly in an attempt to steer momentum. According to data from CoinGlass, liquidity around the spot price zone thickened notably.
Trader Luca pointed out that liquidation levels and negative funding rates hadn’t looked this extreme in some time, suggesting that many traders had switched to a defensive posture and were anticipating more downside.
He and others also noted a potential price “magnet” sitting around $116,000, where a dense cluster of sell orders could attract the next major move.
Market analyst Rekt Capital identified the 21-week exponential moving average (EMA) as Bitcoin’s major short-term obstacle. “Bitcoin is meeting resistance at the 21-week EMA, which is currently forcing price back into its historical demand area,” he noted. Maintaining that support zone, he added, would be crucial for confirming a higher low and setting up another push toward reclaiming the EMA.
Gold’s record rally faces pressure
It wasn’t just crypto that saw turbulence — gold also took a heavy hit, tumbling over 5% on the day after reaching fresh all-time highs earlier in the week. The drop raised the possibility of a “double top” formation, a classic bearish reversal pattern.
James Stanley, senior strategist at Forex.com, warned that if gold’s neckline support gives way, prices could slide toward the $4,000 region based on Fibonacci projections.
Meanwhile, trader Crypto Tony suggested that gold’s retreat might ultimately fuel a rebound in digital assets. “Gold’s surge has been overshadowing risk assets like Bitcoin,” he said. “Once gold cools off, expect crypto to take the spotlight again.”
With gold losing steam and funding rates turning negative, traders are watching closely to see whether Bitcoin can sustain its recovery — or if the next wave of volatility will shift the balance once more.
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