Bitcoin (BTC) has just experienced one of its most severe weekly declines in the past 12 months — and arguably one of the most painful sell-offs in its history. Intense liquidation pressure pushed BTC deep into oversold territory, reigniting a familiar question among investors: is this a potential accumulation zone, or merely a pause before further downside?
While the drawdown has shaken confidence, several data points suggest the market may be approaching a critical inflection point.
Is Bitcoin Entering an Attractive Accumulation Zone?
Multiple indicators point to Bitcoin potentially trading near levels that historically attract demand, particularly from institutional participants.
One key signal comes from Bitcoin spot ETFs, which recorded approximately $1.25 billion in net outflows between Tuesday and Thursday. This period coincided with Bitcoin’s sharp downward trend, suggesting that ETF selling contributed meaningfully to the downside pressure.
However, this dynamic may be shifting. On Friday, Bitcoin ETFs saw $330.7 million in net inflows, aligning with a strong market rebound that pushed BTC up by more than 12% in a single session. This suggests that institutional investors may be stepping back in at discounted price levels, viewing the sell-off as an opportunity rather than a structural breakdown.
Rising Leverage Brings Both Opportunity and Risk
Ahead of the recent crash, market expectations had increasingly pointed toward a potential breakdown below the $60,000 level — a scenario that ultimately materialized last week.
Since then, this zone has begun to act as a psychological and technical support level, with early signs of stabilization emerging. This shift became evident during a wave of liquidations that occurred early Saturday.
Following the initial rebound, Bitcoin briefly surged to $71,000 before retracing to around $67,500 at the time of writing. This pullback resulted in the liquidation of over $119 million in BTC long positions.
Notably, short liquidations exceeded $273 million during the same period, highlighting a sharp increase in leveraged activity on both sides of the market.
The surge in long liquidations reflects growing expectations of a rapid recovery, while the scale of short liquidations indicates that many traders had positioned for continued downside — and were caught off guard by the rebound.
Although liquidations remain elevated over the past 24 hours, they have declined significantly from earlier peaks. On Thursday alone, total Bitcoin long liquidations exceeded $1 billion, marking the second-largest liquidation event since October 10 of last year.
Oversold Conditions and Renewed Global Interest
The last time Bitcoin entered a similarly extreme oversold state was in 2022. Historically, such conditions have often preceded periods of heightened demand, particularly at deeply discounted price levels.
This time appears no different in terms of attention. Global interest in Bitcoin has surged, with Google Trends data showing search activity reaching its highest level in the past 12 months. This renewed visibility suggests that both retail and institutional participants are once again closely watching price action.
Capital flows support this narrative. More than $1 billion in spot Bitcoin inflows were recorded on Friday — the largest single-day inflow in over a year. This influx of capital directly fueled the sharp rebound, signaling that a significant portion of the market is positioning for at least a short-term recovery.
That said, whale activity remains relatively muted. Large holders have yet to significantly increase exposure, suggesting that major players are still exercising caution and avoiding FOMO-driven entries.
Market Sentiment Remains Fragile
Despite the rebound, the absence of strong whale participation may indicate that a full-fledged recovery has yet to take hold. Market sentiment remains dominated by fear, with Bitcoin’s sentiment index falling to historically low levels.
Adding to this cautionary backdrop, liquidity flows over the past 24 hours have favored gold, a traditional safe-haven asset, rather than Bitcoin. This shift highlights ongoing risk aversion as investors seek protection amid elevated volatility in digital asset markets.
Conclusion
Bitcoin’s recent rebound reflects oversold conditions, renewed institutional interest, and a surge in global attention. However, elevated leverage, fragile sentiment, and cautious whale behavior suggest that uncertainty remains high.
Whether Bitcoin can sustain this recovery and reclaim higher levels — or faces further downside risk — will depend on how demand evolves in the coming days. For now, the market appears to be standing at a pivotal crossroads.
Disclaimer:
This article is for informational purposes only and represents a personal blog-style analysis. It does not constitute financial or investment advice. Readers should conduct their own research before making any financial decisions. The author is not responsible for any investment outcomes.
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