Buying BTCUSD amid technical correction within current uptrend

Bitcoin is currently correcting after surging to a local high of $116,395 yesterday. The price is now holding above a key support level near $113,000, indicating a struggle between bulls and bears as the broader uptrend remains intact.

Technical indicators confirm weaker bullish momentum. The Stochastic Oscillator (5, 3, 3) shows slowing growth in the upper neutral zone, while a bearish divergence between %K=68 and %D=62 signals a potentially steeper correction. The RSI indicator is at 46, below the 50 threshold, reflecting a shift in balance towards sellers but remaining in neutral territory. Meanwhile, the Chaikin Oscillator is now declining from its October 26 peak, forming a bearish divergence as buying volume is shrinking despite relatively high price levels.

Fundamental factors add weight to the argument for an imminent correction. Although positive news about trade negotiations between the United States and China and expected rate cuts by the Federal Reserve (Fed) traditionally support risky assets, the market remains cautious. Large corporations holding Bitcoin, excluding BitMine, have virtually stopped accumulating coins after the crash on October 10–11, taking a wait-and-see approach.

Another factor contributing to traders' cautious stance is the low credit rating (B-) of Strategy, the main corporate holder of Bitcoin. The vulnerability of its business model, which depends on a volatile asset, as highlighted by S&P Global, may temporarily dampen the enthusiasm of other companies that are potentially ready to invest.

Nevertheless, despite these headwinds, a structural bullish trend remains in place. The price is hovering above $113,000, and the market liquidity is increasing in anticipation of Fed rate cuts. The probability of a rebound towards $117,500 is quite high, especially if current levels are maintained and the upcoming meeting between Donald Trump and Xi Jinping has a positive outcome, which could reignite interest among institutional investors.

The following trading strategy may come into play:

Buy BTCUSD during a pullback to the $112,900–$113,500 range. Take profit 1: $17,500. Take profit 2: $120,000. Stop loss: $110,000.

The forecast remains relevant between October 28 and November 4, 2025.