Bitcoin Price Analysis: Can BTC Regain Strength After the Recent Meltdown?

Bitcoin (BTC) is attempting to recover after last week’s steep decline. The market has entered a consolidation phase, with the price moving between two key ranges. Overall, Bitcoin’s structure shows signs of stabilization after a strong correction, but traders remain cautious as the price tests major support levels.

Bitcoin Technical Analysis

Daily Chart Overview

On the daily chart, Bitcoin has pulled back to retest the 100-day moving average (MA) near $116,000. The price is currently holding above the $107,000–$109,000 demand zone, which remains a crucial support area.

Last week’s rejection from the $124,000–$125,000 resistance level triggered a sharp retracement after a liquidity sweep above previous highs. Despite this pullback, Bitcoin’s overall market structure remains intact.

If BTC stays above the 100-day MA, it could indicate short-term stabilization and potentially start a gradual recovery. However, if it falls below this level, the next key target lies between $104,000 and $102,000.

4-Hour Chart Outlook

On the 4-hour timeframe, Bitcoin is trading within a narrow horizontal range between $116,000 (resistance) and $109,000 (support). The $109,000–$110,000 area has seen repeated rebounds, showing that buyers are defending this zone.

A confirmed close above $116,000 could trigger a short-term breakout toward $120,000, while a drop below $108,000 may reopen the door to deeper losses near $102,000–$104,000.

Until then, Bitcoin price action is likely to remain range-bound, with day traders taking advantage of small intraday movements while long-term investors wait for a breakout signal.

Bitcoin On-Chain Analysis

According to the 3-day Binance liquidation heatmap, there is dense liquidity between $115,000 and $118,000, just above the current market price. This means a quick upward move could trigger short liquidations and drive BTC higher.

On the downside, liquidity between $108,000–$110,000 appears weak, as most sell-side orders were cleared during the last drop. This reinforces the idea that Bitcoin may continue to oscillate within the $109,000–$116,000 corridor until a decisive move occurs.

Conclusion

Bitcoin is not out of the woods yet, but signs of stabilization are emerging. The $109,000–$116,000 range will likely remain the key battleground for traders.

•A break above $116,000 could push BTC toward $120,000.

•A fall below $108,000 would likely renew bearish momentum.

Until either level breaks, Bitcoin (BTC) will likely trade sideways, with volatility building up for the next major move.

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