• Bitcoin rebounds above $110,000 as RSI recovery hints at easing selling pressure and stabilization.
• Glassnode data shows market de-risking, leverage flush and signs of structural improvement.
• Bitcoin ETP funds led $513M crypto outflows, losing $946M last week, with YTD inflows at $29.3B.

Bitcoin has recovered to trade near $111,000, regaining some of the losses it suffered last week after plummeting from $115,000 to below $104,000 in four days. The move followed a wider selloff a few days after BTC reached an all-time high of $126,198, which led to mass liquidations and profit-taking in the crypto market.

Bitcoin Steadies Above $110,000 as RSI Signals Momentum Recovery 

Technical analysis on the 4-hour chart indicates that Bitcoin is trying to stabilize following its recent fall. The price is currently trading at around $110,665, while the key resistance lies between $112,500 and $115,000, and the main support is between $105,000 and $109,000. 

An upward move above $115,000 would trigger a rally to $118,000-$120,000, while a decline below $109,000 would open the door to a downward trend toward $105,000.

Furthermore, the Relative Strength Index (RSI) has rebounded to around 44 after nearing oversold levels, where it dropped to its lowest point since April of this year. 

Meanwhile, market analyst Mags hinted at a long-term scenario where Bitcoin could keep on rising within an ascending channel on the weekly chart, and the high point could be between $230,000 and $290,000 before entering a significant correction phase. 

Mags’ chart reveals that Bitcoin has been moving in this upward pattern since late 2023. The key support zone is around $105,000, and staying above this zone is key to sustaining the long-term bullish trend.

Bitcoin’s Recovery Signals Caution as Volatility Eases

In addition, Glassnode data shows how traders and investors reacted to the sudden correction of Bitcoin. The Volatility Spread indicator narrowed to 8.12, which was significantly lower than early October levels, indicating that market fluctuations are narrowing as volatility returns to normal levels. Meanwhile, Spot Cumulative Volume Delta (CVD) is still negative at -$370.7 million with continued sell-side dominance. 

#Bitcoin dropped from $115K to $104K in just four days, triggering a sharp de-risking across the market.
Since then, $BTC bounced to $111K, but sentiment remains cautious and positioning is still defensive.

Read more in this week’s Market Pulse https://t.co/RbqduvNciA pic.twitter.com/kUNk3RXzSy

— glassnode (@glassnode) October 20, 2025

Profitability indicators also show weak sentiment. The Realized Profit/Loss Ratio dropped to 0.69, meaning that most participants realized losses last week — a pattern often seen near short-term market bottoms. Meanwhile, Futures Open Interest fell from over $50 billion to $37.05 billion, indicating widespread deleveraging and risk reduction.

Glassnode data reveals that traders have reduced risk, leverage has eased, and funding rates have stabilized. While the market conditions seem healthier than they were recently, buying momentum is still weak, pointing to the possibility that Bitcoin could consolidate between $109,000 and $115,000 before confidence in the market recovers.

Also Read: Bitcoin Set for 2026 Growth as Institutional Confidence Remains High

Crypto ETPs Record $513 Million in Outflows as Trading Volume Surges 

As per CoinShares’ weekly report, global crypto investment products experienced $513 million in net outflows last week, ending a streak of 2 weeks of inflows. Most of these withdrawals were from US-based funds, which experienced $621 million in outflows while funds in Germany, Switzerland, and Canada reported inflows of $59.3 million, $48 million, and $42.3 million, respectively.

Bitcoin-based investment products led the outflows, totaling $946 million, pulling year-to-date inflows down to $29.3 billion, compared with $41.7 billion in 2024. 

According to CoinShares Head of Research, James Butterfill, while on-chain traders reacted negatively to the October 10 “Binance liquidity cascade,” institutional investors in ETPs were largely unshaken. In addition, the trading volume of crypto ETPs in the past week was $51 billion, which is almost twice the weekly average in 2025, indicating a high institutional participation despite market volatility.

Also Read: XRP Builds Strong Momentum, Eyes Bullish $2.80 Breakout Soon