Bitcoin recovered to roughly $110,800 after a weekend sell-off, rallying as signs of easing U.S.–China trade tensions lifted risk appetite.
Key Takeaways:
- Bitcoin climbed about 3–4% from recent intraday lows, trading near $110.8k after dipping to ~$103k amid heightened U.S.-China trade worries.
- Technical momentum shows an elevated RSI (14) around 74.9, indicating short-term overbought conditions and suggesting profit-taking risk if catalysts fade.
- The price rebound was attributed to softer rhetoric and market signals of reduced escalation between Washington and Beijing, reviving demand for risk assets including crypto and spot crypto investment flows.
After a turbulent weekend caused by historic and massive selling, Bitcoin bounced back above the $110,000 mark earlier today, October 20, 2025. The recovery coincided with calming rhetoric between Washington and Beijing, prompting a rebound across equities, commodities, and digital assets.
Bitcoin currently trading near $111K mark, showing noticeable gains in the day amid eased U.S.-China tension. Source: CoinMarketCap
Also, analysts attributed the move to improved market sentiment as investors grew optimistic about a potential easing of trade restrictions and tariffs between the world’s two largest economies.
Traders Eye Relief Rally, But Volatility Persists
Market analysts described the price rebound as a “relief rally” rather than the start of a sustained bull run. While risk assets benefited from the improving geopolitical backdrop, traders warned that sentiment remains fragile.
Crypto market commentators noted that Bitcoin’s price action continues to mirror traditional market moves, particularly those tied to macroeconomic headlines. “The market seems to be in headline-trading mode again,” one digital asset strategist said. “Every piece of positive news about the U.S. and China translates to immediate inflows into risk assets, including cryptocurrency.”
Despite the rebound, traders are cautious about a potential correction. The RSI hovering above 74 suggests overbought momentum, indicating that profit-taking could emerge if bullish catalysts fade.
Technical Snapshot Shows Overbought Momentum
Technical data from major crypto exchanges and charting platforms reveal that Bitcoin is currently testing short-term resistance near $111k–$112k. A breakout above this range could open the path toward $117k, a key psychological level. At the time of writing (9:45AM UTC), BTC is trading at approximately $110,832.02 according to CoinMarketCap, showing a 4.32% gain over the past 24 hours.
However, analysts highlight that the RSI near 75 and elevated trading volume signal potential exhaustion among short-term buyers. Support remains at $103k–$105k, where buying interest previously reappeared during last week’s dip.
Other major cryptocurrencies, including Ethereum (ETH) and Solana (SOL), also registered modest gains, up around 2% and 1.5%, respectively, as overall market sentiment improved.
Outlook: Momentum Hinges on Macro Stability
Looking ahead, Bitcoin’s ability to sustain above $110,000 will largely depend on whether U.S.-China relations continue to improve and global risk sentiment holds steady.
If diplomatic progress persists, risk-on appetite could drive Bitcoin toward new monthly highs. However, any renewed friction or negative macro headlines could quickly reverse recent gains. Traders are expected to monitor both on-chain data and global economic developments closely in the coming days.
While Bitcoin’s long-term fundamentals remain strong, the near-term landscape still favors cautious positioning until volatility cools.
Summary
Bitcoin rebounded above $110k as U.S.–China tensions cooled. RSI near 75 indicates overbought conditions while resistance at $111k–$112k and support at $103k–$105k define the near-term setup. Traders view gains as a relief rally contingent on macro stability.
