BTC is trading near 87,275 after a sharp intraday flush toward 86,100 that quickly got bought back. That move was not random. Price dipped into a clean liquidity pocket below recent lows, triggered long liquidations, and immediately saw strong bids step in. This kind of reaction usually tells us larger players were waiting for cheaper fills rather than chasing higher prices.

The rebound back above the short term moving averages shows momentum shifting from panic selling to stabilization. Volume spiked on the selloff and then cooled on the bounce, which fits a classic liquidation driven move instead of aggressive spot distribution. Funding has also eased from overheated levels, meaning leverage is being reset and the market is less fragile right now.

From a structure point of view, BTC defended the 86,000 to 86,100 support zone cleanly. As long as this area holds, the bias stays constructive. However, price is still below the heavy supply zone around 87,800 to 88,000, where sellers stepped in earlier. That makes this a range resolution phase rather than a confirmed trend continuation.

Market outlook

Short term recovery after a liquidity sweep. Bias is neutral to slightly bullish as long as price holds above key support.

Key levels
Support: 86,100, then 85,400
Resistance: 87,800, then 88,600
Trade levels
TP: 87,800
TP 2: 88,600
SL: 85,900

My take

This looks like a healthy reset, not a breakdown. Big coins are still absorbing sell pressure and reacting well to downside liquidity grabs. That said, confirmation matters more than prediction. I will stay patient and let price show strength above resistance before getting aggressive. Do your own research.

$BTC

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