Bitcoin Drops but Quickly Recovers — Can It Stay Above $100,000?
Bitcoin recently experienced a big price correction that made traders nervous. The price fell from above $120,800 to around $102,000, before bouncing back by almost 9% to over $111,000.
While other coins like Ethereum and XRP dropped more than 13%, Bitcoin only fell around 7%, showing it’s still stronger than most altcoins even during heavy market liquidations.
Now, the main question is: Can Bitcoin stay above $100,000, or will it fall lower?
Let’s look at three key charts that help explain what’s happening.
1. Holders Are Increasing, and Long-Term Investors Stay Calm
On-chain data shows that the number of Bitcoin holders actually increased during the drop — from 56.92 million to 56.98 million.
This means that instead of selling in panic, many investors were buying the dip.
Data from the Spent Coins Age Bands (SCAB) supports this. This metric shows how old the Bitcoins being moved are — basically, whether short-term or long-term holders are selling.
- When the crash started on October 10, newer holders were selling more.
- Long-term holders (those holding for 1–2 years) barely moved their coins.
This means that short-term traders panicked, while experienced investors stayed calm.
Usually, when long-term holders don’t sell, it’s a sign they still believe in Bitcoin’s strength and don’t expect prices to fall far below $100,000.
When newer “weak hands” sell and long-term “strong hands” buy, it often helps stabilize the market before another recovery.
2. Technical Signals Show a Bullish Turn
The recent crash also had a technical reason — a signal from the Relative Strength Index (RSI), which measures market momentum.
Earlier, Bitcoin’s price kept making new highs, but RSI made lower highs. This is called a bearish divergence, which often warns of an upcoming drop.
That’s what led to the recent 19% correction, similar to a previous RSI signal earlier this year.
Now, the situation has flipped to a bullish divergence — meaning momentum is turning positive again.
Between September 25 and October 11, Bitcoin made lower lows, but RSI made higher lows — a common sign that selling pressure is weakening and a rebound may follow soon.
3. Key Price Levels to Watch
At the moment, Bitcoin is trading near $111,600, right around a key Fibonacci level at $111,400.
If it closes above that level, the next price targets could be:
- $113,600
- $116,800
- $120,800
If Bitcoin drops, the first strong supports are at:
- $109,100
- $106,400
- $101,900
So unless Bitcoin closes below $101,900, it’s unlikely to fall under $100,000 anytime soon.
In Short:
- Bitcoin dropped sharply but recovered fast.
- More people are buying, and long-term holders aren’t selling.
- Technical charts now point to a possible bullish reversal.
- As long as Bitcoin stays above $101,900, it’s likely to remain above $100,000 in the short term.
