Bitcoin Eyes $112K Breakout as Gold Correlation Hits High Records

Bitcoin is approaching a crucial stage at the end of October 2025. According to trading analyst Michaël van de Poppe, while gold is noticeably breaking records, Bitcoin is setting up quietly for a major move. The question on the mind of all traders is whether Bitcoin can rise rapidly above the $110K range or fall even further.

Bitcoin Falling Below the Critical $112K Resistance Stage

As the day progressed, the bitcoin price fell well below the psychological range of S112,000. The current price action of Bitcoin suggests a consolidation process and readiness. After reaching a new all-time high of around $126,296 in early October, the cryptocurrency has retreated to test key support levels. The $112K milestone has emerged as a critical price point that will decide Bitcoins trajectory for the rest of 2025.

Van de Poppe‘s technical analysis suggests that Bitcoin must break over this resistance to increase momentum. The asset is currently in “buy the dip” territory, which is defined by accumulation at lower prices before the next leg up. Market data suggests that Bitcoin is testing important support between $107,000 and $109,000, matching the second quarter’s peak and the 200-day Exponential Moving Average range.

If Bitcoin remains above $115,500, the next goals are $120,500 and potentially $123,000. A breakthrough might result in earnings of $128,000-$132,000 at the end of the year. VanEcks Market gurus continue their projection that Bitcoin will reach approximately $180,000 by the end of 2025.

Bitcoin and Gold – The Convergence Story

One of the most intriguing trends is the close association of Bitcoin and gold. CryptoQuant CEO Ki Young Ju states that the correlation between Bitcoin and gold increased by over 0.85, which is a significant change in the way investors perceive the pair.

It is not a coincidence that the combination occurs. Gold is still recording new all-time highs by consuming $4,179 per ounce. Bitcoin appears to be trailing behind gold with eight weeks of duration. Both holdings enjoy comparable macroeconomic strategies. Fears of a decrease in value fiat currency, increasing inflationary expectations and geopolitical risks.

The gold approach of the digital age has been credited once more. The use of Bitcoin by institutional investors is increasing rapidly on the same investment basis as gold, which proves to be a valuable asset instead of a payment tool.

Market Dynamics and Institutional Backing

Several elements are aligning to support Bitcoin‘s bullish argument in the fourth quarter. Institutional adoption is accelerating, with spot Bitcoin ETF inflows continuing strong despite recent volatility. The Federal Reserve’s financial policy is fostering a favorable climate for alternative assets.

On-chain data shows a promising picture. Exchange balances have dropped to their lowest point since 2019, signaling a supply shortage as long-term investors accumulate rather than sell. More than two-thirds of Bitcoins total supply has not changed in the last year, indicating strong holder confidence.The futures market reflects heightened optimism from the crypto users. Bitcoin futures open interest reached a record $32.6 billion, indicating strong momentum and market positivity. Latest market data shows net premiums near the $115K-$130K strike levels, suggesting that traders are still looking for opportunities to increase their profits.