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BTC Dips Amid Volatility, Technical Patterns Hint at Next Surge
BTC experienced a sharp pullback on Monday, falling to a low of $111,809 before rebounding to its current level around $113,120. The unexpected drop comes despite market expectations for BTC to lead a broader rally following recent interest rate cuts.
BTC Drop Linked to Liquidations, Not Panic
According to a top market commentator, the move was largely a hunt for leveraged traders rather than a signal of deeper weakness. Reports indicate over $1.7 billion in crypto liquidations within 24 hours, with more than 95% from long positions. Analysts suggest that this correction is part of normal market dynamics, and no reason exists for investors to panic.
“The squiggles will soon end, and Bitcoin will target higher prices,” the commentator said, noting that BTC has held support within a developing price channel. This setup points to a potential move toward the asset’s current all-time high of $124,457.
Technical Indicators Signal Buying Opportunity
Chartist Ali Martinez highlighted that Bitcoin’s dip below $113,000 triggered a TD Sequential buy signal on the 4-hour chart, suggesting an imminent rebound. Martinez also pointed to an inverted head and shoulders (H&S) pattern, with the left shoulder at $111,745 (August 22) and the head at $107,300 (early September).
“A bounce off the $112,000 support completes the pattern, and breaking the neckline could drive BTC to a new all-time high of $130,000,” Martinez explained, representing a potential 15% price increase from current levels.
What’s Next for Bitcoin?
Despite Monday’s volatility, technical indicators and market commentary suggest BTC may be positioning for a rebound. With key support holding and strong chart patterns developing, analysts see this correction as a potential entry point for investors eyeing the next leg of Bitcoin’s rally.
