Recently, the cryptocurrency market has experienced significant volatility. Bitcoin's price once fell below $112,000 and then rebounded to around $116,000. Such drastic price fluctuations have had a major impact on market participants.

During the price fall, long positions on centralized exchanges (CEX) were severely hit, with a cumulative liquidation scale reaching $1.09 billion. However, when the price rebounded, shorts were not spared either, facing a liquidation scale as high as $2.504 billion. This data indicates that the short forces currently seem to have the upper hand in the market.

Analysts point out that the recent fall in the cryptocurrency market is closely related to the weak performance of the US stock market. As a risk asset, digital currencies such as Bitcoin tend to follow the trends of traditional financial markets. However, market observers believe that if no significant negative news occurs in the short term, the cryptocurrency market is likely to see a technical rebound.

The potential driving force behind this rebound comes from the demand for oversold recovery. After experiencing such drastic price fluctuations, some investors may find the current price attractive and enter the market to 'buy the dip'. This behavior could push prices back up, at least temporarily alleviating downward pressure.

However, investors should remain cautious. The high volatility of the encryption currency market means that risks and opportunities coexist. External factors, such as changes in U.S. economic policy or employment data, can have far-reaching effects on the market.

Overall, the current market environment requires participants to remain highly vigilant, closely monitor various information that may affect market trends, and make informed investment decisions based on their own risk tolerance.