From panic to pump? BTC’s $113K flash crash may be bullish

As the new week begins in the red for the larger part of the cryptocurrency market, Bitcoin (BTC) is no exception, and its recent dip has rattled traders, but some indicators suggest the move could actually be setting the stage for a bullish rebound.

Indeed, Bitcoin has fallen below $113,000, marking a sharp pullback that is testing investor confidence. Yet, popular crypto trading expert Ali Martinez has observed that the TD Sequential indicator has flashed a buy signal on Bitcoin’s 4-hour chart, which has historically hinted at the formation of a local bottom, per his analysis in an X post on September 22.

A critical retest in progress

Meanwhile, the drop has coincided with a retest of a key support level that Bitcoin reclaimed earlier this month. Fellow analyst Crypto Jelle noted that as long as BTC holds this higher low, the path remains open for another push toward the $120,000 region.

As Jelle also observed, it’s a “very clean retest for Bitcoin so far,” adding that he wanted to “see the price back in the $116K region ASAP,” as “reclaiming $118K remains the key objective,” until which time there is “no reason to panic while Bitcoin moves around in the same range.”

That range has become the battleground where bulls are watching $116K – $118K as the zone that needs to flip to confirm renewed momentum, while bears see rejection here as a sign of further weakness.

At the moment, BTC is changing hands at the price of $112,494.58, which indicates a 2.75% dip in the last 24 hours, a decline of 2.01% across the previous seven days, and an accumulated drop of 2.66% on its monthly timeframe, according to the latest charts.

All things considered, the mixed signals leave traders with a classic dilemma – buy the dip or wait for confirmation. The bullish case leans on the TD Sequential track record and the potential higher-low structure. The bearish case warns that if $113K fails decisively, momentum could unwind fast, dragging BTC lower before any real recovery attempt.