- Bitcoin dropped below $112,000 as $1.7 billion in bullish bets were liquidated..
- Analysts eye $117,000 as the pivot for a recovery toward $135,000.
Traders are optimistic on Bitcoin’s chances to hit new records.
That’s despite how Bitcoin’s biggest flush of the year wiped out $1.7 billion in bullish bets on Monday. In fact, the sell-off could be a market reset that propels the top crypto to $135,000.
That’s according to Shawn Young, chief analyst at MEXC Research, who told DL News that the unwinding revealed just how fragile markets become when leverage runs ahead of fundamentals. Leverage refers to the funds that traders borrow to increase the size of their positions and make bolder bets.
These resets are painful, but “create a cleaner base for renewed price discovery movements,” Young said.
A sustained move above $117,000 will show that bulls are regaining control, opening the door for a move toward “$130,000–$135,000 before this cycle peaks,” Young said.
He added that he sees oversold signals across multiple indicators that could spark a rebound rally, but cautioned a dip below $112,000 risks an even bigger dump.
Other analysts share his cautious optimism.
Nick Forster, CEO and founder at Derive, predicted that Bitcoin has a 34% chance of breaking $120,000 by Halloween, and a 26% change of trading above $135,000 by December.
“There’s a large cluster of calls around [the $145,0000, $155,000 and $170,000 positions] for the October 31 expiry,” he said. He referred to options trades where traders position themselves on where they think the price will be on a certain date.
Kyle Chasse, founder of venture capital firm MV Global, pointed out that hedge funds unwinding delta-neutral trades had accelerated ETF outflows, but said it was part of the normal cycle.
“We’ve seen 30% to 40% corrections in past bull markets. This is no different,” he told DL News.
Wave Digital Assets CEO David Siemer said the wipeout reflected the clearing of fragile leverage rather than collapsing fundamentals.
Bitcoin “snowballed against thin liquidity,” but spot demand is showing up and regulatory tailwinds remain intact, Siemer said, adding that the wipeout was “more of a healthy reset for the market rather than anything bearish.”
“Many market participants are treating the pullback as a prime accumulation opportunity rather than the beginning of market capitulation.”
Crypto market movers
- Bitcoin is up 0.2% over the past 24 hours to trade at $113,091.
- Ethereum is up 0.1% over the past 24 hours trading at $4,195.
What we’re reading
- Philip Hammond’s crypto firm Copper reports $40m UK loss — Financial News
- Aster overtakes Hyperliquid with $13bn volume as exchange teases second airdrop— DL News
- Kiln Readies to Restake $6.68 Billion Worth of Ethereum — Unchained
- 3 new ‘Hyperliquid killers’ — Milk Road
- Crypto industry on the verge of ‘over 100 crypto ETF’ swarm, says expert— DL News
Lance Datskoluo is DL News’ Europe-based markets correspondent. Got a tip? Email at lance@dlnews.com.
