BTC Accumulates Before Breakout – Market Tension Building

[ed]

Hello everyone, Bitcoin is trading around $110,965 – down slightly by 0.05%, but the price structure indicates this is not a sign of weakness; rather, it is an accumulation phase before the market chooses its next direction. Narrow ranges in recent sessions reflect a waiting mindset – the market is gathering liquidity on both sides in preparation for a significant breakout.

On the 4H timeframe, Fair Value Gaps (FVGs) are visible in both directions. The $111,500–$112,200 zone acts as temporary resistance, where sellers continuously defend. On the opposite side, the $108,000–$108,800 range remains a key buyers’ line – every touch sees strong absorption. The Ichimoku cloud is flat and thin, showing the market is “compressing force,” which typically precedes an explosion within the next 24–48 hours. To confirm the next upward move, BTC needs a stable 4H close above $112,000.

From a news perspective, the environment slightly favours buyers. US bond yields are cooling, weakening the USD and encouraging capital into risk assets. The PCE report – the Fed’s preferred inflation gauge – will be released on 25/10. If below expectations, markets will quickly price in an earlier Fed rate cut, often a strong catalyst for Bitcoin. Additionally, CoinShares data shows spot Bitcoin ETF inflows have returned after three consecutive weeks of outflows – a clear sign institutions are quietly accumulating.

My preferred scenario remains accumulation and rebound. If $108,000 holds, BTC could rise to $112,200 and potentially extend targets to $114,000–$118,000 in the short term. Only a break below $108,000 with heavy selling would force a deeper pullback to the $106,000 liquidity zone before forming a new bottom.

What do you think – will the next breakout push up or will a sharp dip sweep liquidity before rising?