Bitcoin price prediction: BTC sentiment sours after $114k rejection and long liquidations

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Highlights

BTC consolidates near $108,300 after failed breakout triggered quick long position exits.

RSI remains bearish as EMAs cap recovery, keeping momentum tilted to the downside.

Traders eye $107,500 liquidity pool as next key support for potential rebound.

On Tuesday, Bitcoin initially rallied by more than 6%, rising from $107,500 to a seven-day high of $114,000. The rebound started from the same base that had supported Monday’s move and briefly lifted the asset close to its monthly opening level of $114,400. However, the upside momentum faded as price met resistance near the 50-day EMA. The crossover of the 20 and 100-day EMAs around $113,000 reinforced this ceiling, resulting in a sharp reversal that sent Bitcoin back to $108,300 by the daily close, recording a 2% loss.

Bitcoin price dynamic (July - Oct 2025). Source: Tradingview

The reversal was accompanied by a notable shift in derivatives data. As Bitcoin surged to $114,000, the aggregate long-to-short ratio across major exchanges dropped from 2.4 to 1.7 while open interest spiked, indicating that many traders were taking profits or reducing leverage near resistance. Once the reversal began, the long-to-short ratio climbed back to 2.4, and open interest declined, showing that bullish positions were quickly unwound. This change in positioning highlights the fragility of short-term sentiment.

Bitcoin liquidity pool at $107,500 could attract short-term sellers

From a broader view, Bitcoin’s decline has partly tracked capital shifts away from digital assets after a brief rotation out of gold. As gold retreated from overbought levels, Bitcoin initially benefited but quickly lost traction once macro flows stabilised. Despite the volatility, the weekend recovery structure from $103,500 is still valid since price has yet to make a lower low. A rebound above $114,000 could re-establish bullish momentum and push Bitcoin beyond the monthly open, turning October’s losses into gains if buyers reclaim control near current support.

But technically, Bitcoin remains below its key EMAs on both the daily and hourly charts, suggesting that momentum still favours the downside. The RSI readings on both timeframes are lodged in bearish territory, reflecting persistent selling pressure. The next major liquidity pool sits below Monday and Tuesday’s lows at $107,500, making it a potential draw if sellers strengthen their control.

Recently, we discussed BTC extending its three-day recovery, lifting price and trimming monthly losses. Open interest hinted at speculative buildup as buying volume weakened slightly.

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