Bitcoin Crashes Below $104K – But Analysts Say a Massive $117K Rebound Could Be Hours Away

Bitcoin (BTC) dropped below $104K on Friday, hitting a 15-week low amid heightened selling pressure from the US banking ￰0￱ the market in deep red and investors in significant uncertainty, some experts still believe that a wave of short positions could ￰1￱ Pile Up But $117K Comeback Looms Joao Wedson, founder of Alphractal, pointed out that many traders have recently opened short positions, betting that Bitcoin’s bull cycle is ￰2￱ surge in shorting, however, could set the stage for a short-term ￰3￱ enough short positions are forced to cover, BTC’s price could quickly bounce back to around $117K “within hours.” Wedson’s bold prediction comes at a time when Bitcoin has suffered 6% decline in the past 24 hours ￰4￱ he isn’t the only one who’s confident about a quick ￰5￱ to CryptoQuant analysis, Bitcoin’s recent market action has revealed the brutal efficiency of leverage-driven trading.

Interestingly, two major long liquidation events on Binance punished overextended ￰6￱ first surge of liquidations struck around $114,600, where over $573 million in long positions were wiped ￰7￱ zone had attracted late buyers chasing the prior breakout, but instead of fueling continuation, the market reversed sharply, which ended up triggering cascading ￰8￱ using excessive leverage were forced to exit positions at steep losses, accelerating the short-term ￰9￱ below, a second liquidation cluster emerged near $111,270, which claimed more than $383 million in ￰10￱ wave hit those who had hoped for a quick ￰11￱ incidents illustrate how a long squeeze works – when traders excessively leverage to buy Bitcoin, even small downward moves can trigger mass liquidations, and create a cascading effect that pushes the price further down in rapid ￰12￱ traders often exacerbate this effect by inflating funding rates and intensifying the squeeze.

Historically, after such events, weak hands create conditions for stabilization and even short-term recoveries, as selling pressure subsides and funding rates ￰13￱ ahead, fresh liquidation clusters are now forming around $117,000 and $127,000, thereby marking the next critical zones where stop-losses and leveraged positions could trigger further market ￰14￱ over-leveraged longs flushed and weaker participants removed, CryptoQuant stated that Bitcoin may find room to bounce toward the $117,000 recovery zone, and turn recent pain into a short-term bullish ￰15￱ Critical Trendline Test Since 2023 Another market watcher, Rekt Fencer noted that the most important BTC trendline in the past two years is currently being ￰16￱ same ascending support sparked every major rally since ￰17￱ revealed that each “bullish retest” of this trendline has historically led to a powerful upside continuation, pushing Bitcoin to new cycle highs.

However, a clean break below it could signal the end of the current structural uptrend and attract deeper corrections.