After one of its sharpest swings in over a year, Bitcoin (BTC) is attempting to find balance. Prices have stabilized above $70,000 following a rapid drop to $60,000 last week, but the calm has done little to settle the broader debate; is this a completed reset, or just a pause before another move lower? The recent volatility has flushed out leverage, forced large players to cut risk, and shifted sentiment from optimism to caution. While dip buyers have returned, on-chain data, derivatives metrics, and macro signals suggest the market remains in a fragile holding pattern rather than a clear recovery. Whales Step Back as Leverage Unwinds One of the clearest signs of the reset came from whale activity. On-chain data shows that the so-called Hyperunit whale sold more than $340 million in Bitcoin, sending the funds to Binance after months of aggressive, leveraged trading across crypto markets. The move followed a major liquidation on a large Ethereum position, which reportedly resulted in losses of roughly $250 million. At its peak, the wallet held over $11 billion in Bitcoin. Holdings have since fallen to about $2.2 billion, signaling a shift away from expansion toward capital preservation. The selling coincided with a broader decline in Bitcoin open interest, which fell from around $61 billion to near $49 billion, pointing to widespread deleveraging rather than fresh short positioning. This reduction in leverage has eased immediate downside pressure but has also reduced momentum, leaving Bitcoin without strong directional conviction. Bitcoin Price Stabilizes, But Signals Remain Mixed Bitcoin was trading around $70,000–$71,000 in Asian hours on Monday, holding steady after last week’s rapid rebound. Technical indicators still show weak momentum, with subdued volume and no clear signs of either buyers or sellers being firmly in control. Market participants are split. Some analysts argue that the recent washout has removed excess risk and created conditions for a healthier base. Others warn that similar rebounds in this cycle have turned into bull traps, especially when driven by short-term traders rather than long-term accumulation. Support near $60,000 remains a key level to watch, while resistance between $73,000 and $75,000 is seen as a test for any sustained upside. Macro, Sentiment, and Structural Questions Beyond price action, broader factors are shaping the debate. Global equity markets rebounded, helping risk assets stabilize, while US spot Bitcoin ETFs recorded modest inflows as investors selectively bought the dip. At the same time, concerns around long-term narratives, from Bitcoin’s safe-haven role to emerging discussions about quantum computing risks, continue to hover in the background. Bitcoin’s ability to hold above $70,000 suggests the forced reset may be largely complete. Whether that turns into a durable recovery or another leg lower will depend on liquidity, conviction from larger players, and how markets respond to upcoming macro data. Cover image from ChatGPT, BTCUSD chart on Tradingview
