Bitcoin Briefly Touches $106K Before Pullback: Market Whipsaws Traders Amid Macro Uncertainty

Bitcoin’s price action took traders on a wild ride over the weekend surging past $106,000 before sharply retreating to around $103,000. A swift move that triggered over $600 million in liquidations across crypto derivatives markets.

The spike, which caught both bulls and bears off guard, is the latest chapter in Bitcoin’s ongoing volatility saga. Analysts attribute the rally to a short squeeze, amplified by thin weekend liquidity and heightened macroeconomic uncertainty.

“It was a classic whipsaw,” said Maya Chen, head of digital assets at LunaX Capital. “We saw shorts getting liquidated in a hurry, which forced rapid buying, but the lack of volume and resistance above $106K led to an equally fast retracement.”

🧮 Market Mechanics: What Drove the Jump?

Several key factors were in play:

  • Short Squeeze: As BTC approached the $104K resistance, heavily leveraged short positions began closing, creating upward pressure.

  • Macro Factors: Continued speculation around U.S. Federal Reserve rate cuts and weak job growth data have kept risk appetite elevated in crypto markets.

  • Weekend Illiquidity: With fewer market participants active on weekends, even moderate trading volume can lead to oversized price swings.

“It’s not unusual to see exaggerated moves on weekends,” noted analyst Jacob Green from CryptoQuant. “What made this different was the size and speed of the bounce, it caught both camps leaning too far in opposite directions.”

📊 Liquidation Bloodbath: Over $600M Wiped Out

According to data from Coinglass, the 24-hour liquidation total surpassed $600 million, with the majority coming from short positions. However, as the price retreated, late longs also got caught in the crossfire.

  • 🔻 $340M in shorts liquidated as BTC rallied past $106K

  • 🔻 $270M in longs liquidated during the retracement to $103K

The rapid swings underscore the high-stakes nature of leveraged trading in crypto, particularly in volatile environments.

🔍 Where Does Bitcoin Go Next?

Bitcoin remains in a wide consolidation range between $98K and $106K, with no clear breakout just yet. Traders are watching the following:

  • Resistance at $106.5K remains strong; a break above could target $110K.

  • Support around $101K–$102K needs to hold to prevent a deeper correction.

  • Macro triggers, including this week’s U.S. FOMC meeting minutes, could influence near-term direction.

“There’s a lot of sideline money waiting for a confirmation,” said Clara Dubois, macro strategist at BitEdge Research. “If BTC closes the week above $105K, it may bring renewed momentum. But below $100K, we could see panic-selling kick in.”

🧠 Takeaway

The weekend’s price action is a stark reminder of how quickly sentiment can shift in the crypto market, and how dangerous leveraged positions can be during low-liquidity periods. With broader macro uncertainty still looming, traders may want to brace for more volatility ahead.