Bitcoin Clings to $106K After Whale Selling; Recovery Momentum Weakens
Summary
Slow Recovery as Bitcoin Hovers Near $106K
Bitcoin is trading narrowly above $106,000 after a brief pop to $107,000 earlier in the week followed by a slide back under $105,000. The market’s patchy bounce looks more like short-covering than a sustained rally: buying interest is shallow and volatility spikes quickly when large holders move. Sentiment remains fragile after the October 10 sell-off, which was amplified by Donald Trump’s surprise tariff announcement and consequent rapid liquidations across the broader crypto ecosystem.
Market Snapshot: Liquidity and Sentiment
Volume has been uneven, with on-chain metrics showing clustered sells coming from a small group of wallets. Funding rates on major derivatives venues remain mixed, suggesting hesitant longs and cautious shorts rather than a consensus directional bet. Traditional macro headlines continue to push flows, and the crypto market has yet to decouple from risk-on / risk-off moves in equities and FX. Observers should also factor broader interest in sectors like NFTs that can rotate capital in and out of BTC in short windows.
Whale Activity and Residual Liquidation Effects
A wave of selling by big-time holders — often tagged as whales — appears to be the immediate culprit behind the dip from $107k. These concentrated outflows exacerbate order-book thinness and can trigger stop cascades near key levels. The October 10 liquidations left residual tension in markets: forced exits and margin calls altered leverage distribution, making the market more sensitive to headline shocks. In short, recovery attempts are meeting concentrated resistance rather than broad-based buying.
Technical Outlook and Risks to Watch
From a technical perspective, near-term support sits around $104k–$105k, while a sustained move above $108k–$110k would be needed to restore bullish conviction. Watch funding rates, open interest and liquidation clusters to gauge how leverage is positioned; spikes in any of these could signal renewed volatility. Keep an eye on macro triggers and policy-related headlines — they remain a key driver of abrupt market moves.
What Traders Should Monitor
- Liquidity at major exchanges and concentration of large wallets.
- Funding rate shifts and open interest changes that indicate mounting leverage.
- News flow tied to tariffs, macro policy, or major exchange events.
Monitoring the [crypto market](/en/posts/news?filter=crypto market) for cross-asset flow can help identify where capital might rotate next. Tools that track on-chain movements and order-book depth are particularly useful in this environment.
Conclusion: Cautious Positioning Advised
Bitcoin’s current posture — clinging to $106,000 with thin recovery momentum — favors caution. Traders should expect choppy price action until liquidity broadens and macro headlines stabilize. For users tracking price moves, platforms like Bitlet.app can help monitor derivatives, funding rates, and on-chain signals to inform more disciplined entries and exits. Short-term traders should size positions conservatively and keep stops mindful of clustered whale activity.