Quick overview

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Bitcoin experienced a significant price drop, falling from over $120,800 to nearly $102,000 before rebounding by almost 9% to rise above $111,000 once again.

The total number of Bitcoin holders increased from 56.92 million to 56.98 million since Saturday. This trend indicates that investors are choosing to increase their positions rather than panic sell, demonstrating confidence in dip-buying.

According to data from Binance, Bitcoin’s price briefly reached $102,000 after the drop, but it quickly bounced back to $111,000.

The Relative Strength Index (RSI) declining toward the mid-40s suggests a cooldown from previously overbought levels. Additionally, the Moving Average Convergence Divergence (MACD) has recorded its first negative reading in weeks, which is often interpreted as a sign that momentum is weakening.

Analysts point to strong spot demand and automated buying activity within the $105,000 to $107,000 range, which serves as short-term technical support, as factors contributing to the rapid recovery. Traders are closely monitoring whether Bitcoin can maintain levels above $110,000 as the weekend approaches, though the momentum remains fragile. Technical indicators like the cooling RSI and weakening MACD imply that if selling pressure returns, there could be further downside.

However, the sharp rebound suggests a potential stabilization. The market is tense, and if Bitcoin drops below the psychological $100,000 level, it could trigger another wave of long liquidations.

The bulls need to defend this key short-term support at the 20-day exponential moving average (EMA) ($118,807), where Bitcoin recently retreated. If the price strongly recovers from the 20-day EMA, bulls will attempt to push the BTC/USDT pair toward the all-time high of $126,199.

Breaking through this resistance could send the market toward $141,948. Conversely, a close below the 20-day EMA would be concerning for bulls, possibly leading to a decline toward the 50-day simple moving average (SMA) at $114,571. In essence, Bitcoin’s price may remain range-bound between roughly $107,000 and $126,199 for some time. If the closing price drops below $107,000, sellers will likely regain control.