SKN | Bitcoin Crisscrosses $100K as Analysts Call Start of ‘Bottoming Phase’

Key Points:

• Bitcoin briefly dipped below $100,000, testing key support while traders warned of ongoing “liquidity games.”

• Relative Strength Index (RSI) indicators and price structure suggest a higher low formation, signaling early signs of recovery.

• Onchain data from CryptoQuant shows fading speculative selling, pointing to a potential bottoming phase ahead of a possible rebound.

Bitcoin (BTC) continued to wrestle with the $100,000 level on Friday, fluctuating around one of the market’s most critical psychological thresholds as analysts pointed to signs of a bottoming phase emerging in real time.

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD falling near $99,000 after another round of high-volatility trading during the Wall Street open. Despite recent weakness, technical indicators and onchain signals hint that the world’s largest cryptocurrency may be laying the groundwork for its next rally.

Liquidity Traps and “Herding Games” Dominate Short-Term Moves

The day’s price action highlighted what analysts described as an ongoing “liquidity herding game” — a cycle where large traders strategically place and remove orders to manipulate short-term market sentiment.

Monitoring data from CoinGlass revealed that $700 million in long liquidations occurred across crypto markets over the past 24 hours, underscoring how aggressively traders are being caught offside in Bitcoin’s whipsaw price behavior.

Trading intelligence firm Material Indicators reported more than $57 million in bid liquidity appearing around $99,000, which it described as potential “plunge protection.” However, skepticism remains over whether those bids would actually fill or simply move higher to maintain control over price perception.

“This feels like another round of the liquidity herding game,” Material Indicators said on X. “Watching to see if bids move up with price — or rug if price reverts.”

Such liquidity plays, according to analysts, are typical in late-stage downtrends as whales and algorithmic traders flush out leveraged positions before market sentiment resets.

Technical Structure Shows Early Signs of Reversal

While sentiment remains cautious, short-term technical indicators show early signs of potential stabilization. On the hourly chart, Bitcoin’s RSI rebounded from the “oversold” boundary near 30/100, suggesting that selling momentum is beginning to ease.

“It’s either carving out a higher low here or we’ve got one more stab lower left to clean up the lows,” said trading account CRG on X. “BTC hasn’t shown real strength yet, but this is the right setup for it.”

Analysts pointed out that maintaining support above $99,000–$100,000 could establish a base for Bitcoin to build upon in the coming days, particularly if fresh catalysts emerge from macroeconomic data or renewed ETF inflows.

Still, without confirmation of buying volume, traders are reluctant to call a full reversal. “A high-volume daily close above $102,500 would be the first sign of regained strength,” noted CryptoQuant’s Sunny Mom in a research update.

Onchain Data Suggests Bitcoin Nearing Accumulation Zone

Onchain analytics platform CryptoQuant added a layer of optimism to the market narrative, suggesting that Bitcoin is now firmly in a “bottoming phase.”

“Speculative selling pressure is fading,” wrote Sunny Mom in a Friday blog post, highlighting data from the Cumulative Volume Delta (CVD) on Bitcoin futures.

The CVD metric — which measures net buying and selling pressure — indicates that forced liquidations are waning and that the market is transitioning from capitulation to accumulation.

While spot CVD remains slightly bearish, the lack of mass panic selling suggests that long-term holders are maintaining conviction, even as prices test support. “A bit of good news may be all it takes to spark the next rally,” CryptoQuant concluded.

Market Sentiment: Cautious, but Leaning Toward Relief

As of publication, Bitcoin traded near $101,847, holding slightly above its key psychological floor. Traders remain divided over short-term direction, with volatility expected to persist as liquidity clusters build both above and below spot levels.

Still, the combination of fading leverage, stabilizing RSI, and diminishing sell pressure paints a cautiously constructive picture for the weeks ahead.

“The market looks exhausted,” said Lena Zhou, technical strategist at Falcon Finance. “We’re seeing the same slow reversal conditions we’ve seen in prior cycles — where price stalls, liquidity thins out, and accumulation begins quietly before sentiment flips.”

If history rhymes, analysts believe Bitcoin could be forming its higher low ahead of a larger cyclical rebound — but patience, as always, will be key.