After experiencing a weekend nosedive that had traders questioning whether Bitcoin was a “dead cat,” the market quickly proved otherwise. Despite dropping to $106,189 on Sunday, BTC refused to stay down. Monday’s trading was cautious, Tuesday began poorly, but then buyers surged in unexpectedly, pushing the price to $113,650 by the end of the day—a remarkable 7% recovery in less than 48 hours.
Ethereum mirrored Bitcoin’s movements, bouncing back from $3,830 to $4,103 at a similar pace.
What transpired was a classic liquidation reset. The previous week’s turmoil resulted in the wiping out of nearly $20 billion in over-leveraged positions, leaving the market fragile and nervous. When Bitcoin dipped below $108k on Tuesday morning, another round of forced selling (approximately $528 million) took place within 24 hours. Once the air pocket was cleared, spot buyers were able to drive the price higher, causing shorts to scramble.
Data from Binance illustrated this perfectly. The drop on Sunday shook out weak hands, Monday attempted a retest but failed to break lower, especially evident with ETH barely closing in the red. Tuesday started weak, briefly dropping below the previous day’s low, before surging upwards—the opposite of what a “dead cat bounce” typically entails.
Instead of succumbing to further decline, both BTC and ETH reached new highs, breaking through the resistance at $110,000.
Now, all eyes are on whether BTC can maintain $111,000-$112,000 as its intraday support. If it slips below, attention will shift back to $108,000. Conversely, if it holds firm, $117,000 becomes the next target. For ETH, $4,000 is the crucial level to surpass, marking the boundary between weakness and strength.
Tuesday’s rally does not erase the damage from the previous week but does reshape the short-term narrative. The supposed “dead cat” has proven to have more than one life.
As of the time of writing at 2:39 am UTC on October 22, 2025, Bitcoin is still ranked #1 by market cap, with a price decrease of 1.92% over the past 24 hours. Bitcoin’s market capitalization stands at $2.16 trillion, with a 24-hour trading volume of $106.14 billion. The total crypto market is valued at $3.65 trillion, with a 24-hour volume of $235.99 billion and Bitcoin dominance at 59.05%.
This article was originally published on CryptoSlate.
