Bitcoin's price is undertaking a steady recovery following a sharp crash on Friday that saw its value plummet from $122,000 to a low of $102,000. This rebound, however, is notably being driven by the resilience of spot holders rather than leveraged traders, indicating strong underlying conviction amidst volatile market conditions.
Bitcoin investors demonstrated remarkable restraint during the steep market decline. Data on exchange net positions shows that over the past three days, as BTC tumbled, a mere 6,000 BTC (approximately $688 million) flowed into exchanges. This limited inflow highlights minimal selling activity from long-term holders, even in the face of surging volatility. While many futures traders experienced liquidations during the crash, spot investors held firm, acting as a crucial stabilizing force that prevented a more severe market downturn.
Despite this holder resilience, the broader market momentum remains cautious. The Bitcoin Long/Short Bias chart on Hyperliquid, which aggregates net positions of major BTC traders, showed a significant increase in net shorts starting October 6, days before the crash. This early shift signaled a growing bearish sentiment among institutional traders. Although some of these short positions have since been reduced, the chart remains notably negative, suggesting that while a recovery is underway, overall market sentiment has not yet fully shifted towards optimism.
Bitcoin is currently trading around $114,553, just below the critical $115,000 resistance level. It briefly surpassed this mark during intra-day trading but failed to sustain momentum, indicating persistent selling pressure at this threshold. In the short term, Bitcoin’s outlook remains cautiously bullish, buoyed by the strong sentiment of its holders. A successful reclaim of $115,000 could open the path towards $117,261 and potentially $120,000, with a full recovery requiring a sustained push back to $122,000. Conversely, if bearish pressure from traders outweighs investor restraint, Bitcoin could slip below $112,500, potentially testing the $110,000 support level and invalidating the current bullish outlook.
October 2025, Cryptoniteuae