- •Bitcoin’s sharp drop below $108K triggered a classic liquidity sweep, shaking out overleveraged traders before staging a strong rebound.
- •With buyside liquidity stacked at $126K, BTC’s recovery hints at a strategic accumulation phase possibly setting the stage for a bullish continuation.
- •Recent price action mirrors institutional tactics — stop-runs, liquidity grabs, and a potential pivot that could define Bitcoin’s next major move.
Bitcoin’s sudden plunge below $108K wasn’t just another dip — it was a calculated liquidity grab. With signs of a strong recovery, traders are now watching closely as BTC eyes a move toward $126K.
Liquidity Grab Sets the Stage for Bullish Reversal
Bitcoin’s recent price action is turning heads across the market. On October 10, BTC plummeted nearly 17% from highs near $126,000 to a low just below the $108,000 mark. The drop pierced key support levels, setting off a cascade of liquidations and stop-loss triggers — a move commonly referred to as a "liquidity raid" or "stop-hunt."
According to FOUR | Crypto Spaces, this sharp drop and quick recovery are signs of a calculated smart money strategy — clearing out overleveraged long positions to gather liquidity before launching the next move.
Bitcoin has rebounded,and is trading around $112,291, with the $126,000 liquidity zone, where many long positions previously clustered as the key level to watch.
$126K in Sight: Bullish Continuation or Bear Trap?
With sell-side liquidity cleaned out, attention shifts toward the top — specifically, the buyside liquidity zone near $126,000, which could be the next major magnet for price. This area has been highlighted by multiple technical analysts as a likely target if bullish momentum builds.
The chart from Crypto Spaces suggests a temporary consolidation or minor pullback could precede any move higher. This potential base-building is typical after such deep liquidity grabs. If confirmed by rising volume and bullish candlestick patterns, BTC could be preparing to challenge its previous highs.
However, risk remains. Other analysts, including Ali Martinez, have compared this drop to the December 2021 liquidation candle that marked the beginning of the last bear market. Their concern is the structural similarity between both events — a failed breakout, followed by a fast and deep rejection.
Smart Money Tactics and Market Psychology in Play
One thing is clear — the recent move was no random dip. It follows a pattern of institutional strategy where price is pushed into areas of maximum pain to force weak hands out. This was echoed by analyst Kamran, who pointed to liquidation heatmaps on Binance showing a cluster of wiped-out longs from $116K to $122K.
Once these positions were cleared, BTC found stability just above $110K, suggesting potential accumulation. These signs align with the classic smart money blueprint: flush liquidity, consolidate, then push higher.
Still, confirmation is key. Bulls will need to reclaim higher liquidity zones with strength before any rally toward $126K can materialize.