Bitcoin Bounces Back: Has BTC Shaken Off the 8% Drop?

After a stomach-churning 8% slide, Bitcoin traders are breathing again—but is this recovery the real deal or just another head-fake?

The Correction That Shook the Cage

BTC’s recent dip had crypto Twitter sweating into their laser-eyed avatars. Now, with green candles returning, the usual suspects are declaring ’buy the dip’ like clockwork—because nothing inspires confidence like herd mentality dressed as strategy.

Wall Street’s Shadow Play

Traditional markets might pretend they don’t care about crypto, but watch how fast those institutional vultures circle whenever Bitcoin stumbles. Funny how ’digital gold’ suddenly becomes relevant when there’s blood in the water.

What’s Next?

If history’s any guide, this won’t be the last volatility rodeo. Buckle up, ignore the ’financial advisors’ who still think blockchain is a ski accessory, and remember: in crypto, the only certainty is that someone’s about to be embarrassingly wrong.

Technical Analysis

The Daily Chart

Following its breakout above the previous all-time high at $109K and printing a new peak at $111K, Bitcoin met strong resistance that has sparked notable selling pressure. The failure to sustain momentum above this key psychological level has resulted in a bearish rejection, pushing the asset back below the $109K threshold.

This price action coincided with the sweep of buy-side liquidity resting above the previous swing high, allowing smart money to execute sell orders efficiently. As a result, the market has entered a corrective phase, now approaching the daily fair value gap (FVG) between $97K and $100K. This zone likely holds substantial demand, potentially acting as a support zone that could trigger a bullish reaction.

Should the price stabilize within this FVG, a rebound toward the $111K resistance becomes likely. Conversely, failure to hold this level could pave the way for further downside, with the next key support residing NEAR the $95K region.

The 4-Hour Chart

On the 4-hour timeframe, intensified selling pressure at the $111K resistance has caused BTC to break below its previously maintained ascending price channel. The subsequent pullback toward the broken channel boundary near $108K has confirmed the bearish breakout and suggests weakening momentum.

Currently, the price is consolidating within a critical support-resistance band spanning from $100K to $108K. As long as bitcoin remains within this range, short-term volatility is expected. However, a decisive breakout, either above $108K or below $100K, will likely set the tone for the next significant move, with either a bullish recovery or an extended correction unfolding based on the breakout direction.

On-chain Analysis

The Realized Price of mid-term holders has consistently functioned as a pivotal support or resistance zone, making it a valuable indicator for gauging broader market sentiment. This metric, representing the average on-chain acquisition cost of UTXOs held by long-term investors, often aligns with key turning points in Bitcoin’s price cycle.

Currently, Bitcoin remains positioned above the Realized Price of the 3–6 month holder cohort, a signal that this group remains in profit and has not faced significant stress. However, recent selling pressure and a rejection from the $111K level have dragged the price closer to the Realized Price of the 3–6 month holder range, which resides around the $98K zone.

This places the $98K–$100K area in the spotlight as a crucial support region. A firm reaction from this zone WOULD confirm continued confidence from mid-term holders and may act as the launchpad for a renewed bullish leg, potentially propelling Bitcoin to fresh all-time highs. Failure to hold this support, however, could shift market sentiment and open the door to deeper corrections.