TLDR
- Bitcoin demonstrated market strength by recovering to $98,136 after an intense sell-off that triggered $8 billion in liquidations
- Current trading patterns show a 3.17% increase on February 4, with technical indicators suggesting room for further upside
- Market analysis identifies critical price zones between $101.4K-$105.5K as key resistance, with $123K emerging as a potential target
- Perpetual futures funding rates have turned negative, historically a precursor to price recoveries
- Multiple support levels exist at $97.2K, $92.5K, $89K, and $85.8K, providing stability to current price action
Bitcoin markets have found stability at the $98,136 price level following a turbulent trading session that saw one of the largest liquidation events in recent memory, totaling over $8 billion in positions.
The cryptocurrency market demonstrated its characteristic resilience on February 4, posting a 3.17% gain as traders digested the implications of Monday’s sharp correction and subsequent recovery.
Trading volumes surged during the volatile period, with multiple exchanges reporting heightened activity across spot and derivatives markets. The increased volume suggests active participation from both retail and institutional traders.
Market data reveals an interesting development in the perpetual futures markets, where funding rates have shifted into negative territory. This technical indicator often provides insights into market sentiment and potential price direction.
The negative funding rate environment creates an unusual dynamic where short-position holders pay long-position holders to maintain their positions. Historical market data suggests such conditions often precede sustained price recoveries.
Order book analysis shows accumulation patterns forming at key price levels, particularly around the $97,200 support zone. This price point has emerged as a crucial level for maintaining the current market structure.
Technical traders have identified several resistance zones that could influence future price action. The range between $101,400 and $105,500 represents the immediate hurdle for bulls attempting to push prices higher.
Market participants are closely monitoring volume profiles at current levels, with particular attention to the distribution of buy and sell orders. The data suggests strong hands are maintaining their positions despite recent volatility.

Professional trading desks report increased institutional interest at current price levels, with many viewing the recent correction as an opportunity to acquire positions at more favorable prices.
The technical landscape reveals multiple support levels should the market experience renewed selling pressure. These levels include $92,500, $89,000, and $85,800, each representing historically strong buying zones.
Chart analysis indicates the formation of a series of higher lows, traditionally interpreted as a sign of market strength. This pattern suggests buyers remain active despite recent market turbulence.
Market makers have established strong liquidity pools around current price levels, helping to stabilize prices and reduce the likelihood of extreme price swings in the immediate term.
The recovery pattern has attracted attention from technical analysts who note similarities to previous market corrections. These historical patterns often provided stepping stones to new price discoveries.
Trading algorithms have adjusted their parameters to account for the increased volatility, with many maintaining bullish positions above key support levels. This algorithmic support adds another layer of stability to current price action.
The most recent market data, recorded at 8 AM on February 4, shows Bitcoin maintaining its position at $98,136, suggesting the market has found equilibrium after the recent volatility.
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