Bitcoin Price: Resilient Buyers Fuel Crucial Market Resurgence at $105K

The cryptocurrency world closely watches as the Bitcoin price enters a critical phase. Buyers are actively establishing robust bids around the $105,000 mark, indicating a potential conclusion to the recent crypto market meltdown. This period marks a significant cleanup after last week’s substantial liquidation event. Will BTC successfully reclaim the key $117,500 level following this dip-buying activity?

Bitcoin Price Stabilizes After Market Correction

Analysts describe the current environment as a “clean-up phase” for Bitcoin (BTC). Deep buy orders are now concentrating below the $105,000 threshold. This follows a major deleveraging event that shook the market. Material Indicators, a leading trading resource, noted “strong sell pressure on BTC.” They also highlighted limited technical support near $107,000. While this level might offer brief resistance, analysts suggest insufficient bid liquidity to sustain current prices.

However, more significant concentrations of buy orders have emerged. These are clustered from $105,000 down to $100,000. A move below $105,000 could bring the yearly open at $93,500 into play. This level often acts as a long-term price magnet.

Understanding Crypto Market Dynamics and Leverage Reduction

Blockchain analytics firm Glassnode reports that Bitcoin has begun stabilizing. It remains above its 135-day moving average. The platform explains that the Young Supply MVRV has “reset toward 1.0.” This metric measures unrealized profits among short-term holders. A reset suggests the crypto market has cooled from speculative extremes. Newer investors are no longer holding excessive profits, thus reducing selling pressure.

Glassnode also emphasizes a key difference in this downturn compared to previous capitulation events. Over 90% of Bitcoin’s circulating supply still remains profitable. This means most recent losses impacted traders who bought near the market peak. In contrast, earlier breakdowns, such as the FTX and Terra Luna crashes, saw less than 65% of supply in profit. Those events indicated broader panic. Therefore, this correction appears to be a leverage-driven event, not a widespread sell-off.

Key BTC Analysis: Support Levels Emerge

Adding to this perspective, Bitcoin analyst Axel Adler Jr. observes the market’s behavior during this pullback. He notes it reflects a mature response to volatility. Spot trading volume surged to approximately $44 billion. Futures volume reached $128 billion, and open interest declined by $14 billion. Yet, only about $1 billion of these positions were forced long liquidations.

Adler believes roughly 93% of the deleveraging was not forced. This points to a controlled leverage reduction rather than a cascading liquidation event. This distinction is crucial for understanding current BTC analysis. It suggests a more resilient market structure.

Navigating Future Bitcoin Price Movements: A Market Analysis

With the market stabilizing, $117,500 stands as the key resistance level for bullish continuation. A strong daily close and consolidation above this area could quickly transform the recent correction. It could ignite a renewed rally within the coming week. However, Bitcoin will likely trade sideways, ranging from $110,000 to $100,000. It will attempt to form a new bottom within this range. The recent low around $101,500, recorded on October 10, might face another test. A more convincing range bottom above the $100,000 level needs to emerge.

On a higher timeframe, crypto trader Merlijn observes Bitcoin is retesting a multi-year uptrend. This trendline has remained intact since 2022. Historically, it has served as a springboard during each correction of the current cycle. If it holds once again, it would suggest the broader bull market structure remains intact. The recent drawdown would then represent a mid-cycle reset, not the start of a deeper decline. This ongoing market analysis provides critical context for investors.

Conclusion: Signs of Market Stability Emerge

The current confluence of deep buy bids, controlled deleveraging, and the resilience of Bitcoin’s supply in profit paints a picture of emerging market stability. While challenges remain, especially around key resistance levels, the underlying data suggests a healthy correction. This process helps purge excessive leverage rather than signaling widespread panic. Investors should monitor the $117,500 level and the strength of bids around $100,000-$105,000. These will be crucial indicators for the next phase of Bitcoin’s price action.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.