The key takeaways:
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Bitcoin’s overall uptrend, and data on-chain suggest that the market is in an expansion stage.
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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’s recovery can it be extended further? Three charts show favorable technical conditions that could lead to a rally within the next few days or even weeks.
Bitcoins continue to rise despite $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 price is still well inside its ascending channel. This bullish structure has been guiding its upward trend since the middle of 2023.
Each time BTC tested the lower limit of the channel, buyers jumped in and sparked new rallies towards the upper range.
According to analysts, the key level is now near $111,000 – 20-week MA. Michaël van de Poppe.
Bitcoin’s holding above the MA 20-week support may mark the final phase of capitulation, similar to that seen in the COVID-19 crash You can also read about 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 Buy the Dip
The liquidation of $5.39 billion on Friday forced many small traders out, but medium-sized investors, or holders who are between the sizes of a person and a large company, were also affected. “sharks,” Purchase the dip quickly.
Shark Net Position Change has reached its highest levels since September 2012 at 190 296. Glassnode data.
In addition, Bitcoin supplies held by the exact same cohort have grown exponentially since 2025 and reached a new high record on Friday in spite of the price decline. The more experienced investors may be less worried.
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”
Chartists believe that Bitcoin’s recent Friday correction is more likely to be the mid-cycle cooling off than the beginning of a prolonged bear market. The Great Mattsby.
Each previous Bitcoin bull run has ended after the monthly Bollinger BandsAs shown on the graph below, has fully expanded.
When market movements increase, these bands expand and shrink.
Bitcoin’s peak was reached in previous bull cycles including 2013, 2018 and 2021 when the monthly bands were far apart. This signaled a high level of volatility.
At the moment, they are narrowing. “squeezing,” If history is any guide, this may be the 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
