Bitcoin Drops 2% as Analysts Call the Pullback a Healthy Market Reset

The Bitcoin price dropped 2% in the past 24 hours, trading at $108,218, amid a 12% daily trading volume surge to $40.4 billion.

Bitcoin fell to $104,000 last week, but analysts say the drop was a healthy reset, not the start of a crash. Glassnode reported that the fall helped clear excess leverage, with traders now focusing more on protecting their money. The share of short-term holders has increased, showing more speculative activity, while Bitcoin’s open interest dropped 30%, reducing the risk of big sell-offs.

Jan3 CEO Samson Mow said this $100,000–$200,000 range is testing investors’ confidence, but he believes Bitcoin will “add a zero soon.” Glassnode’s Chris Beamish noted that long-term holders are selling to institutions and ETFs, potentially slowing Bitcoin’s recovery. ETFs also saw $40 million in outflows as U.S.–China trade tensions grew.

Bitcoin Forms Double Bottom, Aiming for $130K After Market Drop

Bitcoin (BTC) is showing signs of recovery after falling from $115,000 to around $104,000 last week. The chart now shows a double bottom pattern, a signal that the price could be preparing for a rebound. At the moment, Bitcoin is trading at $107,928, slightly down by 0.34% in the past 24 hours.

The chart highlights a strong support zone near $104,000, where buyers have stepped in to stop further losses. Above that, the neckline at $115,000 acts as the main resistance. If Bitcoin breaks above this level, analysts expect it to move toward the next reward zone around $130,000.

BTCUSDT Analysis Source: Tradingview

The RSI (Relative Strength Index) is around 42, showing that Bitcoin is neither overbought nor oversold. This means there’s still room for the price to rise. Past patterns show that when RSI is near this level, Bitcoin often begins to recover as buying pressure increases.

Market experts believe this correction is a healthy reset, not the start of a crash. The sideways movement seen on the chart shows consolidation, meaning traders are accumulating Bitcoin before the next big move. If the price holds above $105,000 and breaks $115,000, it could confirm a strong upward trend.

In short, Bitcoin’s chart suggests that the market is getting ready for a possible rebound. Traders are watching the $104,000 support and $115,000 breakout levels closely. A move above the neckline could trigger a fresh rally toward $130,000 to $150,000, restoring confidence after the recent pullback.