Bitcoin rebounds after weekend weakness

Traders tweeted about a “dead cat” after Bitcoin’s sharp decline over the weekend, but the market clearly missed the memo. After falling to $106,189 on Sunday, BTC refused to remain buried. Monday’s tape was cautious, Tuesday started poorly, then a flood of buyers came in from everywhere, pushing the price to $113,650 by evening, a 7% recovery in less than two days.

Ethereum continued on a near-second, rebounding from $3,830 to $4,103, matching Bitcoin’s pace of recovery.

What actually happened was a good old liquidation reset. Last week’s tariff chaos wiped out nearly $20 billion in overleveraged positions, leaving the market vulnerable and spooky. Another wave of forced sales (approximately $528 million) cleared the decks in less than 24 hours as Bitcoin fell below $108,000 on Tuesday morning. Once that air pocket disappeared, spot buyers were free to push prices higher, forcing shorts to scramble for cover.

Binance data shows this perfectly. Sunday’s decline wiped out weak hands. We tried to retest on Monday, but we were unable to break out of the downside, especially on ETH, and barely closed in the red. Tuesday started weakly, rising slightly below the previous day’s low. This is the exact opposite of what a “dead cat” should do.

Instead of reversing, both BTC and ETH hit new window highs and broke through the $110,000 resistance.

The market is currently focused on whether BTC can sustain the intraday floor of $111,000 to $112,000. If it falls below that, all eyes will go straight back to $108,000.

If it can hold this line, $117,000 will be the next magnet. In the case of ETH, $4,000 is the level to break through and is the psychological round number that separates weakness from strength.

Tuesday’s rally won’t erase last week’s damage, but it will rewrite the short-term narrative. The cat, who was supposed to die in the Second Impact, proved to have nine lives.