Bitcoin Price Analysis: Was BTC’s Pullback A Reset Or Bearish Warning?

Bitcoin (BTC) has recovered from Monday’s dramatic crash, which saw the price drop to an intraday low of $111,761 before reclaiming $112,000. The drop was part of a marketwide crash after a liquidation event that wiped out $1.7 billion in leveraged ￰0￱ flagship cryptocurrency is on the verge of reclaiming $113,000, as whale accumulation and dip buying prevented a further ￰1￱ to analysts, excess leverage and thin volumes sparked the flash crash across the crypto market. However, the outlook remains bullish for October, a historically strong month for ￰2￱ Banks Could Begin Stockpiling Bitcoin In Five Years Deutsche Bank research predicts that Bitcoin (BTC) could soon be stockpiled by some central banks by ￰3￱ research paper says that Bitcoin and gold could act as a double hedge against inflation and other ￰4￱ Deutsche Bank report stated that market traits are shifting, with short-term volatility falling in recent ￰5￱ report also highlighted Bitcoin’s ascent to a new all-time high past $123,000, calling it part of the asset’s maturing ￰6￱ Bank believes central banks may begin treating Bitcoin as a complementary store of value, not a replacement for existing reserve assets.

However, the bank highlighted that gold buying by central banks remains robust, moving its gold forecasts higher as bullion ￰7￱ rising demand for bullion is why Deutsche Bank sees space for two scarce assets (physical gold and Bitcoin) to coexist in official ￰8￱ report noted that Bitcoin’s fixed supply and growing institutional adoption have tightened available supply in recent ￰9￱ the same time, it noted that the flagship cryptocurrency’s 30-day volatility hit historic ￰10￱ experts believe low volatility could speed up reserve ￰11￱ Hayes Makes Audacious Bitcoin Prediction Former BitMEX CEO and Bitcoin billionaire Arthur Hayes has predicted that the cryptocurrency could hit $3.4 million by ￰12￱ prediction hinges on Treasury Secretary Scott Bessent implementing yield curve control policies, which could trigger massive money ￰13￱ called this a “once in a century change of the global monetary architecture.” Hayes based his calculation on an estimated $15.229 trillion in combined Federal Reserve and commercial banking credit growth through ￰14￱ model assumes the Federal Reserve will purchase 50% of new Treasury Debt issuance, while bank credit expands by $7.569 ￰15￱ analysis also focuses on Bessent’s plan to regain control of the Federal Reserve through strategic board appointments and regulatory ￰16￱ Stocks Slump Cryptocurrency stocks were mixed on Monday as investors pulled back after crypto treasury firms’ latest buying ￰17￱ stocks fell during early trading on the US and Canadian markets after BTC slumped below $112,000 as the hype after the Federal Reserve’s rate cut ￰18￱ device company Helius Medical Technologies (HSDT) registered the largest drop, ending the day down over 33% after announcing its first Solana (SOL) ￰19￱ purchased 760,190 SOL for over $175 million, at an average cost of $231 per ￰20￱ of Changpeng Zhao-backed CEA Industries (BNC) fell 19.5% after announcing a $500 million share deal on ￰21￱ Immersion Technologies (BMNR) ended the day down 10% after announcing a $1.1 billion ETH ￰22￱ of Michael Saylor’s Strategy also shed over 2%.

Bitcoin (BTC) Price Analysis Bitcoin (BTC) is inching towards the $113,000 mark as it recovers from Monday’s ￰23￱ flagship cryptocurrency and the broader market experienced a brutal selloff that wiped out excess leverage following the Federal Reserve’s rate ￰24￱ Fed cut interest rates by 25 basis points in a landmark decision last ￰25￱ to analysts, the excess leverage, combined with thin volumes, led to a deeper correction and a broader market ￰26￱ 400,000 traders were liquidated, with $1.7 billion in positions wiped out. However, while investors have been cautious, technical levels have held firm. Today’s recovery suggests that investors view Monday’s crash as an isolated selloff, not a bearish ￰27￱ fact, such extreme liquidation events and overleveraged trades help reset market dynamics, often creating a more stable base.

Meanwhile, retail traders and investors have bought the dip, with the average Bitcoin holder at a loss, as indicated by the 30-day MVRV ￰28￱ ratio slipped below 0 for the first time in two weeks. A negative MVRV suggests undervaluation and often precedes a strong reversal. Meanwhile, Bitcoin whales are also ￰29￱ to data from CryptoQuant, wallets holding between 1,000 and 10,000 BTC are snapping up ￰30￱ aligns with data from Santiment, which reveals that Bitcoin whales have added 56,000 BTC since late ￰31￱ accumulation indicates growing confidence in the market outlook and reduces the likelihood of a ￰32￱ ended the previous weekend in the red, dropping 0.56% and settling at $115,314.

The price faced volatility on Monday as buyers and sellers struggled to establish ￰33￱ ultimately gained the upper hand as BTC registered a marginal increase and settled at $115,381. Bullish sentiment intensified on Tuesday as the price rose 1.26% to cross $116,000 and settle at $116,832. Selling pressure returned on Wednesday as BTC fell to an intraday low of $114,724. It recovered from this level to settle at $116,484, ultimately dropping 0.30%.