Bitcoin's $117K PoC: A Critical Battleground for Bulls

Bitcoin (BTC) recently experienced a notable decline, dropping below the $110,000 threshold, a movement that sent ripples through the broader cryptocurrency markets and precipitated a wave of short-term selling pressure. This sharp correction emerged in the wake of post-Federal Reserve volatility, as market participants reacted to the US Federal Reserve’s decision to implement a 25 basis point rate cut alongside an announcement regarding the impending conclusion of its quantitative tightening program. Amidst this backdrop of lingering macroeconomic uncertainty, BTC momentarily entered a risk-off phase, effectively testing investor conviction and instigating a significant unwinding of leveraged positions across the ecosystem.

Despite the immediate market turbulence and the cascade of liquidations, a growing consensus among various market analysts suggests that this recent price action may represent a classic market “shakeout” rather than the precursor to a more substantial market breakdown. Historical precedents in Bitcoin’s price cycles frequently illustrate sharp, corrective pullbacks that often immediately precede renewed upward momentum, particularly during the early phases of liquidity expansion cycles. Such movements are typically designed to flush out overleveraged participants, thus setting the stage for more sustainable price appreciation.

As the market continues to assimilate the implications of the Federal Reserve’s latest policy adjustments, all immediate attention is squarely focused on Bitcoin’s capacity to stabilize its position and subsequently reclaim the pivotal $110,000 zone. This particular price level has demonstrated its resilience and significance throughout the preceding month, consistently serving as a critical pivot point where both bullish and bearish forces have contended for dominance. The coming days will be crucial in determining whether Bitcoin can effectively recover from this sudden sell-off and re-establish a position of strength as November approaches.

The Point of Control: A Critical Battleground at $117K

According to insights from prominent on-chain analyst On-chain Mind, the current price structure of Bitcoin is predominantly being shaped by a substantial volume cluster that is intricately centered around the $117,000 mark. This specific price level has now been identified as the Point of Control (PoC) within the prevailing local market profile. The PoC, in essence, denotes the price zone that has recorded the highest traded volume within a defined range, making it a critical indicator of market equilibrium. It represents the price where the greatest number of transactions occurred, signifying a point of maximum consensus and where both buyers and sellers have exhibited the strongest collective interest, resulting in significant time spent balancing liquidity.

From a practical trading perspective, the Point of Control functions as a fair value zone for active market participants. When Bitcoin’s price is observed trading below this critical PoC, it typically signals that bulls face a strategic imperative to reclaim this level if they are to successfully re-establish upward trend strength and market dominance. Conversely, when the price trades above the PoC, this zone frequently transitions into a robust support level, acting as a foundation for further price advances. At present, BTC continues to trade beneath the $117,000 PoC, a clear indication that the market has yet to decisively re-establish a bullish bias following the recent, abrupt shakeout. Reclaiming this level is paramount for a sustained recovery.

Market Indecision and the Path Forward

On-chain Mind further posits that a successful reclamation of the $117,000 PoC would likely serve as a potent catalyst, triggering renewed buying momentum and potentially opening the pathway for Bitcoin to retest the upper resistance range between $120,000 and $123,000. However, until such a re-establishment of bullish control occurs, the market structure is anticipated to remain largely indecisive, with the price hovering within a neutral zone. In this neutral territory, neither the bulls nor the bears hold a clear, demonstrable advantage, leading to cautious trading behavior.

This prevailing sentiment of indecision aligns seamlessly with broader market observations: a noticeable reduction in overall leverage within the system, a mixed bag of trader sentiment oscillating between caution and optimism, and a general air of prudence adopted by traders in the aftermath of the aggressive liquidations witnessed earlier in October. The market is currently undergoing a crucial phase of digestion, adapting to new macroeconomic shifts, recalibrating existing position sizes, and patiently awaiting a clearer directional signal. Should Bitcoin successfully stabilize above its recent support levels and commence a rotation back towards the Point of Control, then a decisive reclamation of the $117,000 mark could well signify the commencement of the next significant leg up in its price trajectory.

Bitcoin’s Technical Rebound Attempt Above $110K

Currently, Bitcoin (BTC) is trading approximately around the $110,180 level on the 4-hour timeframe, actively attempting to stabilize after the pronounced downturn experienced yesterday. The cryptocurrency has demonstrated an encouraging ability to reclaim the psychologically important $110,000 level, a development that suggests a renewed influx of buying interest emerged at the intraday lows, which were situated around $108,500. This particular level has historically acted as a crucial local demand zone, repeatedly providing robust support for the price since the middle of October. Nevertheless, the ongoing recovery remains inherently fragile, as BTC is now progressively approaching a significant cluster of short-term resistance levels that could impede further upward movement.

A comprehensive analysis of the moving averages reveals a challenging technical landscape. The 50-period Exponential Moving Average (EMA) is positioned just above the current price, acting as immediate overhead resistance. Furthermore, the longer-term 100- and 200-period moving averages remain situated above the price, maintaining a bearish stacking order. This specific alignment of moving averages is a clear technical signal, indicating that overall market momentum has not yet fully transitioned back into the favor of the bulls, suggesting that sellers retain a degree of control in the short term.

To convincingly regain control and establish a more definitive bullish bias, Bitcoin must execute a decisive break above the critical $112,000–$113,000 zone. This area is significant as it represents a confluence point where multiple moving averages converge, and where prior support levels have now inverted to act as formidable resistance. A successful breach of this pivotal zone would then effectively clear the pathway towards the even more critical $117,500 Point of Control. Reclaiming this PoC is widely regarded as the key prerequisite for bulls to re-establish medium-term strength and sustain a meaningful rally. Conversely, if Bitcoin is unable to maintain its position above the $110,000 mark, immediate support levels would be found at $108,500, followed by a deeper liquidity zone around $106,000. This lower zone proved to be a strong defense line for buyers during the aggressive price flush observed on October 10th. For the immediate future, BTC is navigating a neutral recovery posture, diligently working to build a stable base while concurrently contending with persistent overhead pressure stemming from macro uncertainty and the recent unwinding of speculative leverage.