Key points:
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Bitcoin remains volatile as Wall Street opens with a reappearance of $110,000.
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Liquidity conditions are thickening around prices as it is now important to reclaim the 21-week moving average.
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Gold price falls after rematch with all-time highs.
Bitcoin (BTC) buyers and sellers fought for control at the open on Wall Street on Tuesday as gold fell sharply.
Bitcoin Rebounds After Rematch With CME Futures Gap
Data from Cointelegraph Markets Pro and TradingView showed an increase in BTC price volatility.
After falling towards the weekend gap on the CME Group Bitcoin futures market – but not filling it – BTC/USD reversed higher, surpassing the $110,000 mark.
The pair rode changing liquidity conditions on exchange order books, with bids and asks coming and going as entities attempted to influence price performance.
Data from monitoring resource CoinGlass revealed an overall thickening of liquidity around the spot price.
“It’s been a long time since liquidations looked like this with funding rates hovering around negative territories,” trader Luca wrote on the subject in an X article.
The message referred to funding rates on derivatives exchanges, indicating a risk-averse mentality among traders, with an overall expectation of further declines to come.
Luca and others noted a large potential price “magnet” in the form of askings of $116,000 and above.
Trader and analyst Rekt Capital, meanwhile, flagged the 21-week exponential moving average (EMA) as the key resistance level for bulls to beat.
“Bitcoin is currently encountering resistance at the 21-week EMA (green), which pushes the price into the historical demand zone (orange),” he wrote alongside a chart.
“Bitcoin must continue to hold orange as support to not only hold potential lower early, but also position itself for a recovery from the 21-week EMA later.”
Gold ‘double top’ in sight as daily decline hits 5%
On this day, the volatility was not limited to the crypto markets.
Related: Ethereum Fails Again Above $4,000 as Traders Frustrated by Upheaval
Gold, which had reached historic highs in recent days, now finds itself threatened with a downward trend reversal into a “double top” after suffering more than 5.5% daily losses.
$GOLD. Will EQH turn into Double Top? If so, the goal is around 4K. pic.twitter.com/qlh7qm2x21
— HTL-NL 🇳🇱 (@htltimor) October 21, 2025
James Stanley, senior strategist at Forex.com, was among those who predicted a retest of $4,000 if the structure plays out.
“If the neckline breaks and price approaches the projected move, that’s a 4k test,” he told his X followers as part of his latest X analysis, which featured Fibonacci retracement levels.
Crypto trader Tony has suggested that Bitcoin and altcoins could ultimately benefit from a cooling in gold’s historic bull run.
“Riskier asset classes carry more weight in times of uncertainty and GOLD is the top of that chain,” he wrote on X, considering gold the reason for crypto’s underperformance.
“Once this recedes, expect a crypto boom.”
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research before making a decision.
