Bitcoin Plunges Under $104K - Analysts Predict Explosive $117K Rebound Within Hours
Bitcoin's dramatic collapse below $104,000 sends shockwaves through crypto markets.
The Great Correction
Traders watch in horror as Bitcoin sheds thousands in value, testing support levels not seen in weeks. The sudden drop triggers massive liquidations across derivatives markets.
Analysts See Silver Lining
Market technicians point to historical patterns suggesting this could be the final shakeout before another leg up. Fibonacci retracement levels align perfectly with the $117,000 target zone.
Institutional Players Circle
Whale wallets show accumulation patterns during the dip. Smart money appears to be buying while retail panics - because what's a crypto cycle without transferring wealth from the impatient to the patient?
Will this prove to be another 'buy the dip' opportunity or the start of something uglier? The charts suggest we'll know within hours.
Shorts Pile Up But $117K Comeback Looms
Joao Wedson, founder of Alphractal, pointed out that many traders have recently opened short positions, betting that Bitcoin’s bull cycle is over. This surge in shorting, however, could set the stage for a short-term rebound. If enough short positions are forced to cover, BTC’s price could quickly bounce back to around $117K “within hours.”
Wedson’s bold prediction comes at a time when Bitcoin has suffered 6% decline in the past 24 hours alone. But he isn’t the only one who’s confident about a quick recovery.
According to CryptoQuant analysis, Bitcoin’s recent market action has revealed the brutal efficiency of leverage-driven trading. Interestingly, two major long liquidation events on Binance punished overextended bulls. The first surge of liquidations struck around $114,600, where over $573 million in long positions were wiped out.
This zone had attracted late buyers chasing the prior breakout, but instead of fueling continuation, the market reversed sharply, which ended up triggering cascading liquidations. Traders using excessive leverage were forced to exit positions at steep losses, accelerating the short-term sell-off.
Just below, a second liquidation cluster emerged NEAR $111,270, which claimed more than $383 million in losses. This wave hit those who had hoped for a quick rebound. These incidents illustrate how a long squeeze works – when traders excessively leverage to buy Bitcoin, even small downward moves can trigger mass liquidations, and create a cascading effect that pushes the price further down in rapid succession.
Retail traders often exacerbate this effect by inflating funding rates and intensifying the squeeze. Historically, after such events, weak hands create conditions for stabilization and even short-term recoveries, as selling pressure subsides and funding rates normalize.
Looking ahead, fresh liquidation clusters are now forming around $117,000 and $127,000, thereby marking the next critical zones where stop-losses and Leveraged positions could trigger further market moves.
With over-leveraged longs flushed and weaker participants removed, CryptoQuant stated that bitcoin may find room to bounce toward the $117,000 recovery zone, and turn recent pain into a short-term bullish setup.
Most Critical Trendline Test Since 2023
Another market watcher, Rekt Fencer noted that the most important BTC trendline in the past two years is currently being tested. This same ascending support sparked every major rally since 2023. Data revealed that each “bullish retest” of this trendline has historically led to a powerful upside continuation, pushing Bitcoin to new cycle highs.
However, a clean break below it could signal the end of the current structural uptrend and attract deeper corrections.
