Bitcoin regains ground and reverses more than a half of the latest sharp fall

BTCUSD kept firm tone on Monday and attempts to extend recovery from new 3 ½ month low (102880) hit after the biggest drop in 2025 on Friday and Saturday, when bitcoin lost near 10% of its value.

Announcement of President Trump’s plan to raise tariffs on Chinese goods by 100% sparked a sharp sell-off, as bitcoin did not act as digital safe-haven asset, but was sold in risk aversion along with stocks.

Technical picture on daily chart has improved after strong downside rejection on Saturday that left daily candle with very long tail, pointing to strong downside rejection and formation of bear-trap under 200DMA.

Subsequent recovery on Sunday generated another positive signal on completion of bullish engulfing pattern, with fresh extension higher on Monday, probing through daily cloud top (115900).

Today’s close above 55DMA and 50% retracement of 126299/102880 fall (114330/114589 respectively) is needed to keep fresh bulls intact, with close above cloud top to confirm signal and expose targets at 117.353 (Fibo 61.8%) and 120000 (psychological) in extension).

Caution on return and close below daily cloud base (113169).

Res: 116053; 117353; 117980; 120000
Sup: 114589; 113169; 111826; 110000