Bitcoin price charts to watch after record $5.39B Liquidation

Takeaways:

• Bitcoin’s overall uptrend, and data from the blockchain suggest that market growth is continuing.

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

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” In 2020,

BTC has rebounded by 8.5% as of Saturday. It had dropped to a local low around $103,000. It is currently down 11% compared to its recent record of $126.300.

Bitcoin recovery: Can it continue? The three charts below indicate that the technical environment is favorable for an upcoming rally.

Bitcoins continue to rise despite $5.39 Billion wipeout

Bitcoin’s most recent correction looks dramatic when viewed in a shorter time frame, 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.

Analysts say that the moving average of 20 weeks (20-week MA), which is near 111,000 dollars, should be watched closely. 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 leave the market during Friday’s $5.39 billion liquidation, middle-sized traders, or what is 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. The more experienced investors may be less worried.

Related: Bitcoin slump may rebound up to 21% in 7 days if history repeats: Economist

If this wave of purchases by larger companies continues, it could pave the way for Bitcoin to make its next major recovery.

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 BandsThe chart shows that, an indicator of volatility, was 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 a precursor to further price increases.

Mattsby, The Great said

As a guide, bear markets do not start when monthly Bollinger Bands still squeezing. The bear markets start when the Bollinger Bands are still squeezing.

This article contains no investment recommendations or advice. Each investment or trading decision involves some risk. Readers should do their own research before making any decisions.