As Bitcoin navigates through turbulent market conditions, traders are closely monitoring key liquidity levels that could signal potential bounces or bottom formations. According to Michaël van de Poppe, a prominent crypto analyst, the focus is on Bitcoin reclaiming liquidity from the October 10th crash, which might serve as a pivotal point for market recovery. This comes amid a disastrous start to the month, with $112K highlighted as the crucial threshold for any attempt at new all-time highs. In this analysis, we delve into the trading implications of these developments, exploring support and resistance levels, potential trading opportunities, and broader market sentiment for BTC/USD and other pairs.

Bitcoin's Liquidity Hunt and Potential Bottom Formations

The concept of Bitcoin taking liquidity from the October 10th crash refers to the cryptocurrency sweeping through lower price points to absorb sell orders before potentially reversing. On November 4, 2025, Michaël van de Poppe emphasized this dynamic, noting it as a key indicator for bounces or bottom formations. Historically, such liquidity grabs have preceded significant rallies, as seen in past cycles where BTC dipped to test support before surging. For traders, this means watching the $90K to $100K range closely, where previous crash lows could act as strong support. If Bitcoin manages to hold above these levels, it might form a double-bottom pattern, a bullish signal often accompanied by increased trading volume. Current on-chain metrics, such as rising whale accumulation, support this view, suggesting institutional interest despite the month's poor performance. Traders should consider long positions on BTC/USD if volume spikes above 50 billion in 24-hour trading, with a stop-loss below $95K to manage risks.

Key Resistance at $112K and ATH Prospects

Breaking through $112K remains essential for Bitcoin to challenge new all-time highs, as per the analyst's insights. This level has acted as a formidable resistance in recent months, where previous attempts to breach it led to sharp pullbacks. From a technical analysis perspective, the relative strength index (RSI) on the daily chart is hovering around 45, indicating oversold conditions that could fuel a rebound. Pair this with moving averages: the 50-day MA at approximately $105K and the 200-day MA at $85K, providing a framework for potential upward momentum. For cross-market correlations, Bitcoin's movement often influences stock indices like the S&P 500, especially with growing institutional flows into crypto ETFs. If BTC surpasses $112K, it could trigger a risk-on sentiment, boosting altcoins and related stocks. Trading opportunities here include scalping BTC/ETH pairs, where Ethereum might follow Bitcoin's lead with a 5-10% gain potential in the short term. Always monitor trading volumes, which dipped to 40 billion on November 3, 2025, signaling caution before any major move.

Amid the disastrous monthly start, market sentiment is mixed, with fear and greed index dipping to 35, reflecting bearish undertones. However, this could present buying opportunities for long-term holders. On-chain data shows a net inflow of 20,000 BTC to exchanges last week, potentially setting up for a liquidity squeeze. For diversified trading, consider BTC against stablecoins like USDT, where volatility might offer quick profits. Resistance levels beyond $112K include $120K, a psychological barrier tied to previous highs. Support, meanwhile, strengthens at $98K, based on Fibonacci retracement from the October crash. Traders eyeing options should look at call spreads expiring in mid-November 2025, targeting strikes around $110K for balanced risk-reward. Overall, while risks remain high, the liquidity dynamics highlighted could pave the way for a bullish reversal, emphasizing the importance of disciplined trading strategies in this volatile environment.

Broader Market Implications and Trading Strategies

Looking ahead, Bitcoin's performance ties into global economic factors, including interest rate decisions and geopolitical tensions, which have contributed to the month's rocky start. Institutional flows, such as those from BlackRock's Bitcoin ETF, have seen inflows of $500 million in the past week, providing a bullish undercurrent. For stock market correlations, a Bitcoin bounce could lift tech-heavy Nasdaq stocks, given the overlap in AI and blockchain investments. Trading pairs like BTC/SOL offer high-beta opportunities, with Solana potentially outperforming if Bitcoin stabilizes. Key indicators to watch include the MACD crossover on the 4-hour chart, which turned positive on November 2, 2025, at 14:00 UTC, hinting at building momentum. Volume analysis shows a 15% increase in perpetual futures open interest, reaching $30 billion, which could amplify price swings. In summary, while $112K is the linchpin for new ATHs, the liquidity from the October crash presents tactical entry points for savvy traders, blending technical setups with fundamental catalysts for optimal outcomes.