Bitcoin (BTC) is struggling to regain momentum following a significant liquidity flush that shook the broader crypto market. The recent sweep above the $116,000 level triggered high volatility, erasing leveraged positions and leaving traders cautious about taking new long entries.
According to technical analyst Can Özsüer, the hourly BTC chart currently shows little to no bullish reflection, suggesting that market sentiment remains fragile. The sharp move above $116,000 absorbed liquidity but failed to establish sustained buying pressure, leading to renewed uncertainty across Bitcoin and altcoins.
Özsüer noted that the market’s weakness has deepened after the liquidity sweep, as traders await confirmation of a structural reversal before committing to new positions. For now, the lack of clear bullish momentum has prompted many to adopt a wait-and-see approach, focusing on potential support zones that could define Bitcoin’s next direction.
$111,000 Identified as Key Reaction Zone
In his analysis shared on X (formerly Twitter), Özsüer identified the $111,000 region as an important reaction zone where the market might experience an initial bounce. This area, he suggested, could act as a short-term support, attracting buyers looking to capitalize on oversold conditions.
However, Özsüer also warned that if this level fails to hold, Bitcoin could slide further toward the $109,000 trendline support, signaling deeper downside risk. Such a move would test the resilience of bulls who have been defending major support areas amid fluctuating market sentiment.
He further advised traders to approach the current setup cautiously, emphasizing the importance of position management and risk control. His strategy centers around “box number 1,” a price zone defined by recent trading ranges that can help traders identify safe entry points. Staying within this technical framework, Özsüer suggested, provides a clearer picture for managing trades in volatile market conditions.
“The cleanest and safest approach,” Özsüer noted, “is to construct trading plans around optimal price levels and ensure positions remain protected above the defined support structure.”
Ethereum Attempts To Reclaim $4,200 Resistance
While Bitcoin battles consolidation and waning momentum, Ethereum (ETH) appears to be in a more promising position. The second-largest cryptocurrency has been showing signs of recovery after bouncing from lower levels, and analysts believe the next major test lies at the $4,200 resistance zone.
According to crypto analyst Ted Pillows, Ethereum is currently engaged in a critical battle to reclaim $4,200, a move that could determine its short-term trajectory. A decisive close above this level would confirm renewed strength among buyers and potentially pave the way for a more sustained upward trend.
Pillows outlined that if ETH can reclaim and hold $4,200, traders should “expect more bullish continuation,” with potential upside targets near $4,320 and $4,450. This move would confirm that Ethereum has regained momentum and could attract additional institutional and retail interest.
$4,000 Acts As Ethereum’s Critical Defense Zone
On the flip side, Pillows cautioned that failing to reclaim $4,200 could trigger a short-term retracement toward the $4,000 support level. This area serves as the last major defense before ETH risks deeper corrections that might erode its recent gains.
If Ethereum fails to hold above $4,000, a decline toward $3,880 or even $3,780 could follow, depending on overall market sentiment and Bitcoin’s next move. However, many analysts see the $4,000 zone as a healthy consolidation level that could set the stage for renewed buying once volatility subsides.
Market watchers believe that the correlation between Bitcoin and Ethereum remains strong, meaning that BTC’s next significant move will likely influence ETH’s behavior as well. Should Bitcoin manage to stabilize above $113,000 and regain $115,000, Ethereum could find the momentum needed to confirm its breakout.
Traders Await the Next Market Signal
For now, both Bitcoin and Ethereum are at critical inflection points. Bitcoin’s post-liquidity weakness has yet to produce a clear bullish reversal, while Ethereum’s recovery attempt is being closely watched as a potential catalyst for broader market optimism.
The coming days are expected to be decisive, as traders await signals confirming whether this consolidation phase will lead to a breakout or another corrective leg lower.
If Bitcoin can hold its key support levels near $111,000 and reclaim $115,500, alongside Ethereum’s successful breakout above $4,200, the crypto market could enter a new phase of bullish momentum heading into November. Conversely, failure to maintain these zones might open the door to another round of volatility and short-term downside pressure.
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