Bitcoin climbs to 112k as futures gap adds near-term risk

Bitcoin rebounded to roughly $112,000 on Monday after a sharp late-September correction, but the market remains fragile as traders weigh technical signals, elevated trading activity and the appearance of a futures gap that could pull prices lower in the near term. The cryptocurrency is about 11 percent below its August all-time high above $123,000 and has swung between roughly $108,000 and $114,000 over the past week.

Trading activity has increased alongside the price recovery. Daily spot volume rose dramatically, and futures open interest climbed to about $78.5 billion, reflecting heavier positioning in derivatives markets. Last week’s forced liquidations were severe: on two separate days more than $1 billion in leveraged positions were wiped out, underscoring ongoing volatility. A new gap in Chicago Mercantile Exchange Bitcoin futures has also opened, a pattern that traders watch closely because such gaps often act as price magnets and can be filled quickly, potentially prompting a near-term pullback.

Analysts offered contrasting technical views but largely agreed that October’s seasonal strength could influence direction. Historical data compiled by CoinGlass shows October...