The key takeaways:
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Bitcoin’s uptrend in general and data on the blockchain suggest that market continues to be expanding.
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Strong dip-buying by “sharks,” The key trends that support the BTC recovery are:
BitcoinBTCAfter traders saw the crash, they tried to get back on track. biggest single-day wipeout The largest leveraged position liquidation ever recorded, at $5.39 Billion, is more than twice the size of any previous 24-hour period. “COVID-19 crash” The year 2020 is a new decade.
BTC price has recovered by 8.50% since Saturday after hitting its low local of around $103,000. It is currently down 11% compared to its previous record of $126.300.
Bitcoin recovery: Can it continue? The three charts below indicate that the technical environment is favorable for an upcoming rally.
Bitcoin’s uptrend is unaffected by the $5.39 billion wipeout
Bitcoin’s recent correction might look drastic on smaller timeframes. But zooming out, it is actually less dramatic than previous pullbacks.
On the weekly chart, BTC has dropped less than 10% so far, notably less than the 14–15% dips seen in March 2025 and July 2024, both of which were followed by strong rebounds.
Bitcoin’s rising price has remained within the ascending channel since its mid-2023 uptrend.
The buyers have been active each time BTC tests the lower border of this channel. This has sparked new rallies to the upper area.
According to analysts, the key level is now near $111,000 – 20-week MA. Michaël van de Poppe.
Bitcoin trading above its 20-week MA could signal a capitulation stage similar to what happened in 2008. COVID-19 crash Then, there is the FTX bottom.
This would be the beginning of the next BTC major uptrend, which will begin with an $140,000-150,000 target for year’s end.
BTC sharks purchase the dip
While smaller holders were affected by the Friday liquidation of $5.39 Billion, middle-sized traders, otherwise known as “sharks,” Purchase the dip quickly.
According to the Daily Shark Net Position Change (which tracks wallets that hold between 100-1,000 BTC), it has risen to its highest point since September 2012. Glassnode data.
The Bitcoin supply owned by this cohort has also grown at an exponential rate in 2025. It reached a record high last Friday, despite the drop in price. It is possible that more experienced investors are less concerned about the price drop.
Related: Bitcoin slump may rebound up to 21% in 7 days if history repeats: Economist
This trend of large entities buying Bitcoin could be the foundation for Bitcoin’s future big recoveries if it continues.
Bitcoin Bollinger Bands still “squeezing”
According to chartists, Bitcoin’s correction on Friday could have been a cooling down in the middle of its cycle rather than a sign that a bear market is about to begin. The Great Mattsby.
The previous Bitcoin bull runs ended just after their monthly Bollinger BandsAs shown on the graph below, has fully expanded.
The bands are wider when the market is moving faster and smaller when it’s slower.
Bitcoin has peaked in past bull cycles (2013, 2018, 2021) when these monthly bands have been stretched out, indicating a volatile market.
At the moment, they are narrowing. “squeezing,” If history is any guide, this may be a precursor to further price increases.
Mattsby, The Great said
As a guide, bear markets do not start when monthly Bollinger Bands still squeeze. The bear markets start when the Bollinger Bands are still squeezing.
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Source: cointelegraph.com
