Monday’s trading session saw Bitcoin bounce back by 12.35%, temporarily touching $102,500 before settling at current levels. The recovery came after a substantial sell-off that rattled market participants and tested key support levels.
Market data indicates that trading volume increased notably during the correction, with exchanges reporting heightened activity as traders adjusted their positions. The sell-off primarily affected leveraged traders, leading to the massive liquidation event.
The funding rate, a key metric that indicates market sentiment in perpetual futures contracts, has turned negative. This metric represents the recurring fee that traders pay to maintain their positions. When the funding rate is negative, it suggests that short-position holders are paying long-position holders.
Historical data shows a pattern where negative funding rates often precede strong market recoveries. Previous instances of funding rate reversals have coincided with price rebounds, making this indicator particularly noteworthy for market observers.
The price action has established several key technical levels that traders are watching closely. The $97,200 mark has emerged as a crucial support level, with buyers stepping in whenever prices approach this zone.
Above current prices, resistance levels are clearly defined between $101,400 and $105,500. These price points have acted as barriers during previous attempts to move higher, and breaking through them could open the path to new price discoveries.
The market structure suggests that if Bitcoin can maintain its position above $97,200, the broader uptrend remains intact. This level has served as a foundation for previous price movements and continues to attract buying interest.
Trading data reveals that institutional involvement remains steady, with professional traders maintaining their positions despite the recent volatility. This behavior indicates continued confidence in Bitcoin’s long-term prospects.
Technical analysis points to several strategic buy levels should the market experience another downturn. These levels include $92,500, $89,000, and $85,800, which have previously demonstrated strong buying pressure.
The recent price movement has created a series of higher lows on the daily chart, a pattern that typically suggests underlying market strength. This technical formation adds weight to the bullish case for Bitcoin’s near-term prospects.
Market analysts are closely monitoring the $110,000 level, as a break above this price point could trigger a move toward $123,000, which aligns with key Fibonacci extension levels drawn from previous market cycles.
The recovery has been accompanied by improving market metrics across various timeframes. The daily trading range has expanded, indicating increased market participation and liquidity.
Looking at order book data, there appears to be strong buy walls at the current support levels, suggesting that traders are prepared to defend these price points against further downside pressure.
The most recent market data shows Bitcoin trading at $98,136 as of 8 AM on February 4, maintaining its position above key support levels while market participants assess the next potential price movement.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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By Nermeen Nabil Khear 
