Bitcoin news: BTC price recovers from 8-day low as short seller activity drops
Bitcoin rebounds after dropping to eight-day low
Bitcoin price is showing signs of short-term strength after days of downside pressure. Following two straight days of bearish price action on growing volume, the flagship cryptocurrency fell out of a 5-day consolidation, breaking to the downside.
This drop pushed the price as low as $105,200 during today’s early Asian session, marking an 8-day low. But the rebound since then has raised market interest once again.
Highlights
-Bitcoin rebounds today, trimming weekly losses and erasing yesterday’s decline
-Bitcoin RSI flips bullish on both daily and 4-hour charts as short-term momentum improves
-Sustained hold above $107,000 could open a push toward $108,500 resistance
Today’s sharp recovery in the Asian and European sessions has lifted Bitcoin above $107,000, trimming weekly losses to nearly -1% and recovering the bulk of yesterday’s decline. This bounce also triggered a technical shift in sentiment. Bitcoin’s daily RSI, which had moved from bullish to neutral territory due to the earlier slump, has now flipped back into the bullish zone. The 4-hour RSI has also turned bullish following today’s gain, suggesting that momentum is returning to the upside.
BTC price dynamics (May - July 2025). Source: TradingView
What’s more important is that the recent bearish channel that has defined Bitcoin price action since May is beginning to lose its grip. Despite the recent pullback, selling activity from short-term holders has dropped significantly. This is interpreted as a sign that investors are unwilling to let go of their positions unless price makes a stronger move, either higher or lower.
Bitcoin has struggled to break and hold above the $107,000 to $108,500 zone over the past three weeks, and that barrier is now under fresh pressure. If price can sustain above the $107,000 level through the rest of the day, technical traders may gain more confidence in the upside case.
The current setup suggests that Bitcoin could attempt a test of the $108,500 zone, which has acted as a ceiling in recent sessions. Market participants are closely watching for confirmation of sustained buying interest to validate a near-term shift away from the bearish trend that has prevailed since May.
Bitcoin sentiment leaned bullish in July, supported by S&P 500 record highs. Bitcoin formed a bearish engulfing pattern below $108,800, showing buyers’ hesitation.
