Bitcoin price charts to watch after record $5.39B Liquidation

Takeaways:

• Bitcoin’s overall uptrend, and data on-chain suggest that the market is in an expanding phase.

• Strong dip-buying by “sharks,” Key trendlines support another BTC rally.

BitcoinBTC() tried to recover one day after the traders had witnessed the 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” In 2020,

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? Three charts show favorable technical conditions that could lead to a rally within the next few days or even weeks.

Bitcoin’s uptrend is unaffected by the $5.39 billion wipeout

Bitcoin’s most recent correction looks dramatic when viewed in a shorter timeframe, but zooming it out shows that the pullback is much milder than many previous ones.

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 stepped in and sparked new rallies towards the upper range.

According to analysts, the key level is now near the 20-week MA (moving average) of $111,000 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 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 purchase the dip

While smaller holders were forced to liquidate their positions during the Friday $5.39 Billion Liquidation, middle-sized investors, otherwise known as “sharks,” Buy the dip aggressively

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.

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”

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.

Each previous Bitcoin bull run has ended after the monthly Bollinger BandsAs can be seen in the below chart, an indicator of volatility had expanded to its full extent.

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.

These bands, though, are currently still shrinking. “squeezing,” History suggests that this could be the beginning of a new price rally.

Mattsby the Great:

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.

The article is not intended to provide investment advice. Risk is inherent in every investment decision and trade. The reader should always do research prior to making a final decision.