Wednesday

Bitcoin

Material

Key points:
<ul>
 <li>Bitcoin price action stays lower after falling over 4% in hours.</li>
 <li>Liquidity is already recovering, with short-term volatility increasingly likely as a result.</li>
 <li>BTC price predictions see a local bottom forming as low as $114,000.</li>
</ul>
Bitcoin (<a href="https://cointelegraph.com/bitcoin-price" rel="noopener noreferrer nofollow">BTC</a>) struggled to reclaim $122,000 on Wednesday as exchange users bet on fresh BTC price volatility.
<figure>
 <img alt="Bitcoin risks plunge to $114K as 'predatory' traders squeeze BTC longs" src="https://s3.cointelegraph.com/uploads/2025-10/0199c2c5-66d5-7956-8c5c-801e706acf54" title="">
 <figcaption style="text-align: center;">
 BTC/USD one-hour chart. Source: Cointelegraph/TradingView
 </figcaption>
</figure>
<h2 id="br-bitcoin-tracks-sideways-after-all-time-high-tumble"> Bitcoin tracks sideways after all-time high tumble</h2>
Data from <a href="https://subscription.cointelegraph.com/?_gl=1*enpnlb*_ga*MTE3NDE3MjgzMC4xNzE1NjcwODE1*_ga_53R24TEEB1*MTc0NDcyNDI2NS40MS4xLjE3NDQ3MjQyNjkuNTYuMC45MTY3MzAwMzI." rel="noopener noreferrer nofollow">Cointelegraph Markets Pro</a> and <a href="https://www.tradingview.com/symbols/BTCUSD/?exchange=BITSTAMP" rel="noopener noreferrer nofollow" target="_blank">TradingView</a> showed BTC/USD consolidating after a <a href="https://cointelegraph.com/news/bitcoin-sells-off-but-btc-derivatives-data-points-to-150k-by-year-s-end" rel="noopener noreferrer nofollow">snap 4.2% correction</a> the previous day.
This had been broadly expected given successive all-time highs without serious upward momentum.
As <a href="https://cointelegraph.com/news/bitcoin-squeeze-record-88-billion-open-interest-flush-worries" rel="noopener noreferrer nofollow">Cointelegraph reported</a>, rapidly increasing open interest (OI) on derivatives markets had added to suspicions that Bitcoin could retrace a chunk of its recent upside.
<figure>
 <img alt="Bitcoin risks plunge to $114K as 'predatory' traders squeeze BTC longs" src="https://s3.cointelegraph.com/uploads/2025-10/0199c2be-df82-71cb-9246-08505fff7166" title="">
 <figcaption style="text-align: center;">
 Exchange Bitcoin futures OI (screenshot). Source: CoinGlass
 </figcaption>
</figure>
“Very efficient price action tbh hence the low volatility thus far,” trader Skew commented in an <a href="https://x.com/52kskew/status/1975591240512291306" rel="noopener noreferrer nofollow" target="_blank">X post</a> Tuesday as the correction took shape.
Skew subsequently noted “predatory” behavior by large-volume traders on exchange order books.
<blockquote class="twitter-tweet">
 Clear PvP -&gt; Predatory price action on-going here via binance market on <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$BTC</a> spoofing on the ask aka above price on spot spoofing on the bid aka below price on perps How the predatory strategy works? Aim is to temporarily hold or lift price via perps &amp; then push market lower by…— Skew Δ (@52kskew) <a href="https://twitter.com/52kskew/status/1975613194673791372?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">October 7, 2025</a>
</blockquote>
Overnight, however, liquidity began to flow back into the market, with data from CoinGlass showing thickening bid-side and ask-side liquidity at the time of writing.
<figure>
 <img alt="Bitcoin risks plunge to $114K as 'predatory' traders squeeze BTC longs" src="https://s3.cointelegraph.com/uploads/2025-10/0199c2c2-81a1-7ed7-8433-7cc090338930" title="">
 <figcaption style="text-align: center;">
 BTC liquidation heatmap. Source: CoinGlass
 </figcaption>
</figure>
Skew <a href="https://x.com/52kskew/status/1975656426078150821" rel="noopener noreferrer nofollow" target="_blank">suggested</a> that a “consolidation range” may result.
<h2 id="br-btc-price-support-puts-114-000-back-in-focus"> BTC price support puts $114,000 back in focus</h2>
Others considered where BTC/USD could put in a reliable local floor, warning that this may be significantly below the current spot price.
Related: <a href="https://cointelegraph.com/news/btc-price-october-breakout-odds-low-5-things-bitcoin-this-week" rel="noopener noreferrer nofollow">BTC October price breakout odds low: 5 things to know in Bitcoin this week</a>
“Between $121K–$120K there isn’t much support, which means price can cut through quickly if selling picks up,” trader ZYN <a href="https://x.com/Zynweb3/status/1975621445486080353" rel="noopener noreferrer nofollow" target="_blank">reported</a> on X
<blockquote>
 “But just below, around $117K, nearly 190K BTC were last bought. That’s a heavy cluster of recent buyers.”
</blockquote>
<figure>
 <img alt="Bitcoin risks plunge to $114K as 'predatory' traders squeeze BTC longs" src="https://s3.cointelegraph.com/uploads/2025-10/0199c2bf-e82a-7731-98cb-8d4e416aafb3" title="">
 <figcaption style="text-align: center;">
 Bitcoin cost basis distribution heatmap. Source: ZYN/X
 </figcaption>
</figure>
ZYN used the cost basis of recent buyers to predict where demand should shore up the price.&nbsp;
“If we get a pullback into that range, it’s the kind of zone where demand usually shows up strong buyers defending their entries, new capital stepping in. In short: weak cushion at $121K, but a very real floor forming at $117K,” he concluded.
Using its proprietary trading signals, trading resource Material Indicators also flagged $120,000 support, but said that a stronger foundation for a bounce <a href="https://x.com/MI_Algos/status/1975573193273282575" rel="noopener noreferrer nofollow" target="_blank">lay at $114,000</a>, near Bitcoin’s 50-day simple moving average (SMA).
<figure>
 <img alt="Bitcoin risks plunge to $114K as 'predatory' traders squeeze BTC longs" src="https://s3.cointelegraph.com/uploads/2025-10/0199c2c0-845b-71eb-b448-207b4ee7c490" title="">
 <figcaption style="text-align: center;">
 BTC/USD one-day chart. Source: Material Indicators/X
 </figcaption>
</figure>
For crypto trader, analyst and entrepreneur Michaël van de Poppe, the next buy zone extended down to $118,000.
“Bitcoin made a new all-time high, which is often a reference for people to be taking profits,” he reasoned.&nbsp;
<blockquote>
 “Slight pullback and we're approaching my personal area of interest for potential dip buying.”
</blockquote>
<figure>
 <img alt="Bitcoin risks plunge to $114K as 'predatory' traders squeeze BTC longs" src="https://s3.cointelegraph.com/uploads/2025-10/0199c2c1-51cc-752f-81d8-a22d7b75303b" title="">
 <figcaption style="text-align: center;">
 BTC/USDT one-day chart with trading volume, RSI data. Source: Michaël van de Poppe/X
 </figcaption>
</figure>
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Bitcoin risks plunge to $114K as 'predatory' traders squeeze BTC longs

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