From a Technical Analysis perspective, Bitcoin is currently in the B wave rebound stage of the wave theory, which often has bull trap characteristics. Investors should be wary of the potential C wave fall that may follow.

It is worth noting that Bitcoin has not experienced sufficient adjustment after rising from $75,000 to $110,000, and has now fallen below the key ascending trendline support, which suggests that the magnitude of the adjustment may further increase.

Some high-elasticity assets in the market, such as Solana, have fallen from nearly $190 to the $140 range, while Pepe coin has almost halved from a starting point of $0.16. Generally, small-cap coins tend to lead adjustments ahead of Bitcoin, and this market performance reminds investors not to mistake a short-term rebound for a trend reversal.

Technical analysis shows that there is significant resistance in the area above $110,500, with short-term target levels potentially pointing to $106,000, while medium to long-term may test the support at the round figure of $100,000.