The top coin’s year-to-date gain sits at close to 10% after peaking at an all-time high of $126,300 in October.
The move sparked heavy liquidations in the futures market. About $640 million in long positions were wiped out over a 24-hour stretch.
That figure, market watchers say, is the second-largest daily long liquidation event since June 2021. The October 10 event remains the largest on record for comparison.
The $101,000 level has taken on extra meaning. Traders point out that bulls stepped in near $98,000 and pushed the market back toward the lower trendline of a long-term ascending channel that has held since October 2023.
Reports have disclosed that defending this channel bottom would be read as a bullish sign, while a close below it could signal deeper losses and a break in the market structure that has supported the rally.
A nearby gap on the CME futures chart sits between $92,000 and $93,000, roughly 10% from current prices, and some analysts are watching that area closely.
Historically, Bitcoin has often filled such gaps before resuming its next leg up, and the gap is now a possible target if bearish pressure continues.
At the same time, strong buying interest around the $101,000 zone could halt any slide and force prices back up.
Yet buyers were quick to take advantage of the lower levels, and the rebound to $103,000 level showed a degree of demand at current prices. Volume and near-term momentum will be key in determining whether that demand is durable.
Market participants say the most important signal will be a daily close relative to the ascending channel’s lower trendline around $101,000.
A sustained close above that mark would likely be read as a buying chance, while a decisive break and continued selling could open the path toward the CME gap near $92,000–$93,000.
Broader moves in US equities and large trader activity are also being monitored, since they helped trigger the recent pullback.
Featured image from Unsplash, chart from TradingView
