Is a Larger Pullback Incoming for the BTC Price Rally or Is This a Buy the Dip Opportunity?
Cryptocurrency markets have experienced a significant bearish impact during the day’s trading following the latest rate cut. this bitcoin price Bitcoin plummeted below $100,000 when the Federal Reserve chairman made negative comments when asked what he thought about the nation’s Bitcoin reserves. However, the coin has led a strong recovery, rising above $102,000 in a short period of time, while suggesting that traders may have taken advantage of another “buy the dip” opportunity. But what caused the downfall?
Liquidations play an important role in influencing the price of cryptocurrencies, primarily Bitcoin. Since the coin started rising above $100,000, long positions began to increase significantly above $105,000 and expanded to $107,000. However, these are expected to close, triggering a massive correction. According to data from Coinglass, the market liquidated more than $782 million in the past 24 hours, which could lead to a significant price drop. However, Bitcoin liquidity remains above $102,000, which may look scary but ultimately sends a long-term bullish signal.
Here, long positions have accumulated just above $102,000, suggesting that the price is about to undergo a significant correction after exceeding these levels. This could be the reason why Bitcoin price faces significant hurdles in breaking out of these levels. On the other hand, there is significant pressure going on here, which may force the price to accumulate around this range. In this way, there is a chance that a short squeeze could occur, pushing the price higher, possibly above $110,000.
On the other hand, BTC’s dominance has rebounded significantly, back to 60%. At a time when dominance is expected to drop below 50%, the latest reversal above 58% suggests a major reversal may be coming soon.
This level has triggered a rebound and given previous price action, it is believed to have reached overhead resistance. This suggests that prices are in the middle of the current bull market, so the next bullish wave could push prices to new highs. However, as has happened before, rejection may ensue, triggering a new bearish wave across the market, possibly in the second half of 2025.
