This is a mechanical bounce, driven primarily by forced selling into a decent bid stack.

Dislocations on the offer come into play as price auctions swiftly lower, making it easier to jump the spread following climactic selling.

The small market buys observed at the lows are likely a mix of short covering and early buyers stepping in, anticipating a reversal or mean reversion.

As the offer thins, price can move higher quickly, triggering a sharp repricing (typical in moments where aggressive selling pressure fades)

Markets often retrace to areas of low-volume imbalance, where two-way flow was previously absent.

Given the current structure, I remain confident the recent lows will be revisited or encroached upon in the near term, as liquidity seeks to test conviction and flush weak hands.

#BTC