Bitcoin Crashes Below $104K – But Analysts Say a Massive $117K Rebound Could Be Hours Away

Bitcoin (BTC) dropped beneath $104K on Friday, hitting a 15-week low amid heightened promoting strain from the US banking turmoil.

With the market in deep crimson and buyers in important uncertainty, some consultants nonetheless consider that a wave of quick positions might backfire.

Shorts Pile Up But $117K Comeback Looms

Joao Wedson, founding father of Alphractal, pointed out that many merchants have lately opened quick positions, betting that Bitcoin’s bull cycle is over. This surge in shorting, nevertheless, might set the stage for a short-term rebound. If sufficient quick positions are compelled to cowl, BTC’s value might shortly bounce again to round $117K “inside hours.”

Wedson’s daring prediction comes at a time when Bitcoin has suffered 6% decline up to now 24 hours alone. But he isn’t the one one who’s assured about a fast restoration.

According to CryptoQuant evaluation, Bitcoin’s latest market motion has revealed the brutal effectivity of leverage-driven buying and selling. Interestingly, two main lengthy liquidation occasions on Binance punished overextended bulls. The first surge of liquidations struck round $114,600, the place over $573 million in lengthy positions have been worn out.

This zone had attracted late patrons chasing the prior breakout, however as an alternative of fueling continuation, the market reversed sharply, which ended up triggering cascading liquidations. Traders utilizing extreme leverage have been compelled to exit positions at steep losses, accelerating the short-term sell-off.

Just beneath, a second liquidation cluster emerged close to $111,270, which claimed greater than $383 million in losses. This wave hit those that had hoped for a fast rebound. These incidents illustrate how a lengthy squeeze works – when merchants excessively leverage to purchase Bitcoin, even small downward strikes can set off mass liquidations, and create a cascading impact that pushes the value additional down in fast succession.

Retail merchants usually exacerbate this impact by inflating funding charges and intensifying the squeeze. Historically, after such occasions, weak fingers create circumstances for stabilization and even short-term recoveries, as promoting strain subsides and funding charges normalize.

Looking forward, contemporary liquidation clusters at the moment are forming round $117,000 and $127,000, thereby marking the subsequent essential zones the place stop-losses and leveraged positions might set off additional market strikes.

With over-leveraged longs flushed and weaker individuals eliminated, CryptoQuant acknowledged that Bitcoin could discover room to bounce towards the $117,000 restoration zone, and switch latest ache into a short-term bullish setup.

Most Critical Trendline Test Since 2023

Another market watcher, Rekt Fencer noted that crucial BTC trendline up to now two years is at present being examined. This identical ascending help sparked each main rally since 2023. Data revealed that every “bullish retest” of this trendline has traditionally led to a highly effective upside continuation, pushing Bitcoin to new cycle highs.

However, a clear break beneath it might sign the tip of the present structural uptrend and appeal to deeper corrections.

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