The last week was a rollercoaster for Bitcoin. Prices dropped below $105K for the first time in weeks and just when traders started panicking BTC flipped back showing that the bulls are still alive. The market sentiment shifted from fear to cautious optimism as Bitcoin tried to reclaim the $120K zone once again.
BTC’s Wild Ride This Week
Bitcoin started the week on a shaky note. After holding steady near $112K for a few days the price suddenly slipped below $108K. Selling pressure increased as investors, booked profits from the recent rally. The drop below $105K triggered a wave of liquidations across futures markets but that didn’t last long.
By mid week BTC found solid support around $104K and started bouncing back. Traders who missed the earlier dip jumped in quickly pushing prices above $115K, again. The rebound showed how fast market sentiment can flip in the crypto world. Many short term bears were caught off guard by how strong the bounce was.
Traders Regain Confidence
The bounce restored some confidence among retail and institutional traders. On chain data showed that wallets holding more than one BTC saw an increase hinting that accumulation is back. Trading volumes on major exchanges like Binance and Coinbase also picked up during the recovery phase.
Analysts said the market is still in a healthy correction phase after a strong multi week rally that pushed Bitcoin from $85K to over $120K earlier this month. Corrections like this are natural they said and they often help reset the leverage before the next big move.
Social media sentiment also improved. Crypto Twitter turned bullish again with many traders predicting that BTC could break $130K by the end of October if buying momentum continues.
Altcoins Lag Behind
While Bitcoin bounced nicely most altcoins couldn’t keep up. Ethereum stayed around $2,750 while Solana and BNB both struggled to regain traction. Meme coins like DOGE and SHIB saw small, upticks but remained far from their monthly highs.
The focus clearly shifted back to Bitcoin as traders, looked for safety in the most dominant crypto asset. Analysts believe that once BTC stabilizes above $120K, money may start rotating back into major, altcoins again.
What Drove the Rebound
A few factors helped Bitcoin recover quickly this week. First the US inflation report came in softer than expected calming fears about more aggressive rate hikes. The stock market also held steady which helped improve overall risk appetite.
Second several institutional reports showed growing interest from funds and family offices looking to increase exposure to digital assets. A few major ETFs, tracking Bitcoin futures saw fresh inflows which added fuel to the rebound.
Lastly the ongoing geopolitical uncertainty pushed some investors toward BTC as a hedge asset again. Historically Bitcoin has often benefited when global markets look uncertain.
Technical Setup
From a technical view Bitcoin looks like it’s forming a strong support zone between $104K and $107K. As long as BTC holds above this range analysts say the path toward $120K remains open. The key resistance lies near $121K and $124K zones.
If Bitcoin breaks those levels with strong volume the next target could easily be $130K. On the flip side if it slips below $104K again traders might see a retest near $98K though that looks less likely for now.
Moving averages still show a bullish crossover on the daily chart and the RSI has cooled off from overbought levels giving BTC room to move higher again.
Investor Sentiment
Retail traders are slowly coming back after being cautious last week. On Reddit and X most discussions around Bitcoin turned positive with users calling the recent dip a perfect “buy the drop” moment. Some large holders known as whales have also been adding to their positions which often signals confidence.
However not everyone is overly optimistic. Some analysts warned that volatility, may remain high as the market digests the recent swings. They also said traders should avoid chasing green candles and instead, watch for clean breakouts above resistance.
The Week Ahead
Looking ahead to next week traders will be watching how BTC behaves near $120K. If Bitcoin manages to close a few daily candles above that level a sharp breakout, could follow. But if sellers step in again the market may continue, to consolidate for a few more sessions.
Macro factors like US economic data and global equity, performance will also play a role in Bitcoin’s next move. Any positive surprise from traditional, markets could give crypto bulls another push.
Final Take
The past week proved once again that Bitcoin, doesn’t stay down for long. From dropping below $105K to almost touching $120K again it showed the resilience that keeps traders hooked. The recovery has renewed hopes of a breakout and if momentum stays strong BTC could soon retest the highs from earlier this year.
For now the market remains cautiously bullish and most traders agree on one thing — Bitcoin’s story this year is far from over.
