Bitcoin rebounds strongly, recovering over half of its recent sharp decline

BTCUSD maintained a firm tone on Monday, extending its rebound from a new three-and-a-half-month low at 102880, recorded after the sharpest drop of 2025 on Friday and Saturday, during which Bitcoin lost nearly 10% of its value.

The decline was triggered by President Trump’s announcement of plans to impose a 100% tariff on Chinese goods, sparking a wave of risk aversion that saw Bitcoin sold off alongside equities, rather than acting as a digital safe-haven asset.

Technically, the daily chart shows notable improvement after Saturday’s strong downside rejection, which left a long lower shadow, signaling a bear-trap formation below the 200-day moving average.

Sunday’s recovery added to the positive tone with the formation of a bullish engulfing pattern, followed by further upside extension on Monday, as prices tested the top of the daily Ichimoku cloud around 115900.

A daily close above both the 55-day moving average and the 50% retracement of the 126299–102880 decline (114330/114589) is needed to confirm the bullish momentum. A sustained move above the cloud top would reinforce the signal and open the way toward 117353 (Fibo 61.8%) and the psychological 120000 level.

However, a close back below the daily cloud base at 113169 would caution of renewed weakness.

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