Bitcoin underwent a significant sell-off, reaching an intraday low around $61,349 and forcing liquidations exceeding $1.7 billion. Long positions bore the brunt of this move, absorbing over $1.5 billion of the liquidations. Following this, the cryptocurrency rebounded toward the mid-$63,000 range, but fundamental signs confirming a solid demand bottom remain elusive.
This intense liquidation event significantly pared down excessive bullish leverage that had built up in the market. Funding rates swung sharply negative, indicating that the leverage bias shifted away from optimistic longs toward a more cautious stance. Open interest also declined markedly, reflecting a cleaner speculative environment than seen in the previous week.
Despite these technical resets, ongoing selling pressure persists. Data shows continued outflows from Bitcoin ETFs and elevated exchange inflows, signaling that spot market sellers remain active. The Crypto Fear & Greed Index plunged to 12, placing sentiment firmly in “extreme fear” territory — a gauge often watched for sentiment extremes but not yet translating into confirmed buying momentum.
Analysts highlight the contrast between Bitcoin and traditional equities during the same timeframe. While major indexes like the Dow, S&P 500, and Nasdaq experienced moderate declines, none faced similar deleveraging waves. Bitcoin’s around-the-clock trading, higher leverage levels, and reactive investors compressed stress from broader macro conditions into a shorter timeframe, speeding the market’s internal adjustment process.
One possible scenario under discussion is a potential retest of the $55,000 to $57,000 support zone if ETF outflows continue and selling pressure endures. However, technical improvements following the crash suggest this downside risk is diminishing.
On-chain data further underscores the uncertain outlook. Reports note that short-term holders’ average cost basis fell close to $76,400, and spot volume shifted negatively to levels not seen since early February. These indicators confirm persistent supply absorption challenges as buyers have not yet firmly established control over the market.
Some institutions remain bullish over the longer horizon. One analyst projects Bitcoin could still reach $100,000 by the end of 2026 but cautions that dipping below $60,000 might provoke another wave of selling, with little apparent support beneath that level.
Meanwhile, exchange flow metrics indicate that considerable selling pressure from exchanges remains, posing a direct obstacle to the narrative of a sustained recovery. Until spot buyers step forward decisively to soak up excess supply, the market may remain volatile and directionally uncertain.