Bitcoin price charts to watch after record $5.39B Liquidation

The key takeaways:

• The Bitcoin market is still in an expansion stage, based on the data from its blockchain and bitcoin’s overall uptrend.

• 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 has rebounded 8.50% as of Saturday. It had dropped to its local minimum at $103,000. As of the writing of this article, BTC is still down by 11% since 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.

Bitcoins continue to rise despite $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 compared to 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 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’s holding above the MA 20-week support may mark the final phase of capitulation, similar to that seen in the COVID-19 crash Then, there is the FTX bottom.

The next BTC trend would begin then, a major BTC upwards movement. $140,000-150,000 target for year’s end.

BTC Sharks Buy the Dip

During the liquidation of $5.39 billion on Friday, many small traders, or medium-sized investors, were also forced to leave. “sharks,” Purchase the dip quickly.

Shark Net Position Change has reached its highest levels 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. 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, which signals a volatile market.

These bands, though, are currently still getting narrower. “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.

This article contains no investment recommendations or advice. Risk is inherent in every investment decision and trade. The reader should always do research prior to making a final decision.