Bitcoin Holds Above $105K After $1B Weekend Liquidation Shock

Bitcoin (BTC) remained steady above the $105,000 mark on Tuesday, signaling recovery momentum after a sharp weekend correction triggered nearly $1 billion in liquidations across crypto markets. The sell-off, which spanned Saturday through Monday, caused heightened volatility and shook trader sentiment, briefly pushing BTC below key support levels.

Despite the turbulence, Bitcoin’s resilience above $105K suggests renewed investor confidence and strong buying interest at lower levels. Analysts note that this consolidation may provide a foundation for further gains, particularly if broader market sentiment stabilizes and institutional inflows continue.

The recent wave of liquidations highlights the leverage risks prevalent in the derivatives market. Data from major exchanges shows that both long and short positions were flushed out, underscoring the fragile balance of sentiment-driven trading. While weekend corrections are not unusual for crypto, the scale of the recent event reaffirms the volatility that defines Bitcoin’s price action.

Bitcoin's ongoing strength comes amid growing interest in digital assets from traditional financial institutions and increasing optimism around macroeconomic conditions. With inflation concerns easing and monetary policy expectations stabilizing, risk-on appetite appears to be returning to the crypto space.

Market watchers are now eyeing Bitcoin’s next move, with the $108,000 and $110,000 levels seen as immediate resistance. A decisive break above these zones could trigger another bullish leg, while sustained consolidation above $105K would support a healthier uptrend.

As always, traders are urged to manage risk appropriately, especially during periods of high volatility. Bitcoin’s long-term outlook remains bullish, but short-term swings will likely continue as the market adjusts to macro cues and investor positioning.