Bitcoin is bouncing back after a weekend slump that defied expectations

During Bitcoin’s weekend plunge, traders muttered about a “dead cat,” but the market clearly missed the memo. After falling to $106,189 on Sunday, BTC refused to stay buried. Monday’s tape was cautious, Tuesday started off ugly, and then, out of nowhere, buyers rushed in and dragged the price to $113,650 by nightfall: a 7% comeback in less than two days.

Ethereum followed almost tick for tick, bouncing from $3,830 to $4,103 and matching Bitcoin’s recovery pace.

What really happened was an old-fashioned liquidation reset. The previous week’s rate chaos wiped out nearly $20 billion of overleveraged positions, leaving the market vulnerable and shaken. When Bitcoin fell below $108,000 on Tuesday morning, a new wave of forced selling followed (about 1.5 million euros). $528 million) cleared the decks within 24 hours. Once that air pocket disappeared, spot buyers had free rein to push the price higher, forcing shorts to run for cover.

Data from Binance illustrates this perfectly. Sunday’s drop cleared the weak hands. Monday tried to test again but couldn’t get lower, especially on ETH, which closed barely red. Tuesday opened softly, dipped just below the previous day’s low and then roared upward: the opposite of what a “dead cat” should do.

Instead of rolling over, both BTC and ETH printed new window highs and broke through the resistance at $110,000.

Now the market is looking to see if BTC can hold $111,000-$112,000 as an intraday bottom. If it slides down, all eyes immediately turn back to $108,000.

If it manages to hold the line, $117,000 will become the next magnet. For ETH, $4,000 is the level to beat: the psychological round number that separates weakness from strength.

Tuesday’s rally doesn’t erase last week’s damage, but it does rewrite the short-term story. The cat that would die in the second collision has just proven that it has nine lives.