Bitcoin is showing signs of recovery after last week’s historic $20 billion liquidation event, with the price climbing back to around $107,800 at press time.
The rebound comes as technical indicators turn slightly positive, hinting at a potential short-term relief rally.
Data from CoinMarketCap shows Bitcoin up nearly 1.6% in the past hour and 0.8% over 24 hours, despite being down more than 3% on the week. Its market capitalization stands at roughly $2.15 trillion, with daily trading volume surpassing $34 billion.
On the charts, BTC/USD is stabilizing above $107,000 following an intense correction from the $120,000 zone. The Relative Strength Index (RSI) currently sits near 47, suggesting neutral momentum after several days in oversold territory. Meanwhile, the MACD lines are beginning to flatten, often a precursor to a possible trend reversal.
Technical analysis from TradingView also paints a cautiously optimistic picture. The one-hour summary leans toward a “Buy” signal, with 13 indicators flashing bullish against four bearish. Moving averages echo this bias, reflecting improving short-term sentiment among traders.
Adding to the intrigue, on-chain analyst Crypto Rover noted that nearly $20 billion in short liquidations are clustered between $110,000 and $130,000, according to data from Coinglass. Combined with negative funding rates, this creates what Rover called an “interesting combination” for a potential squeeze if bullish momentum returns.
If Bitcoin manages to reclaim $110,000 in the coming sessions, analysts expect a wave of short covering could fuel a rapid move toward $115,000–$120,000. However, failure to hold current support near $106,000 could trigger renewed selling pressure, with eyes turning to the $100,000 psychological zone as the next key defense level.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/market/bitcoin-rebounds-toward-108000-as-traders-eye-20b-in-short-liquidations/