The past two days have served as a stark reminder of Bitcoin’s inherent volatility, with market sentiment swinging rapidly from confidence to anxiety. A sharp sell-off was followed by a noticeable rebound on Saturday, yet underlying conditions suggest the market has not fully stabilized. The central question now is whether this recovery represents a sustainable shift or merely a brief respite before further turbulence.

Macroeconomic Headwinds and Market Synchronization

The broader landscape continues to pose challenges. Investors are closely monitoring the potential implications of the Trump administration’s trade policies on inflation and interest rates. Furthermore, a strengthening U.S. dollar typically exerts pressure on non-yielding assets, providing additional context for Bitcoin’s retreat from its 2025 peak.

Notably, Bitcoin’s price action has recently displayed a pronounced correlation with traditional risk assets. The simultaneous pullback in global equities, particularly within the technology sector, mirrored the cryptocurrency’s decline. This synchronization indicates the crypto market’s heightened sensitivity to shifting macroeconomic uncertainty, including concerns over liquidity conditions and potential policy changes.

The Leverage Unwind: A Cascade of Liquidations

A classic leverage flush on derivatives markets significantly amplified the downward move. Data from major trading platforms reveals that forced liquidations exceeded $1 billion in value within a 24-hour window between Thursday and Friday. The catalyst was Bitcoin’s breach of the psychologically significant $65,000 level, which triggered the closure of a substantial number of long positions.

This pattern is well-established: the failure of key support levels increases pressure on leveraged traders, and the ensuing liquidations create a feedback loop that exacerbates the sell-off. This chain reaction was a primary driver behind the short-term spike in volatility.

Should investors sell immediately? Or is it worth buying Bitcoin?

The $60,000 Defense Line and Oversold Signals

Bitcoin established a local low near $60,000, a region market observers view as a crucial defensive line. This zone has previously acted as a floor during the ongoing correction from the all-time high reached in October 2025.

Several technical and sentiment indicators suggest the selling pressure may be at least temporarily exhausted:

• Oversold Momentum: The Relative Strength Index (RSI) dipped into oversold territory on Friday before showing signs of an upward turn.
• Extreme Fear: The Fear and Greed Index plummeted into single-digit figures, a level often associated with widespread capitulation among market participants.
• Holder Resilience: On-chain data indicates holdings belonging to long-term investors remained relatively stable, implying the panic was largely concentrated among speculative derivatives traders.

The hard data aligns with this picture: Bitcoin closed Friday with a -14.10% decline, marking a current 52-week low at $62,853.69.

The Week Ahead: A Defining Test for the Recovery

The immediate focus turns to whether Bitcoin can consolidate its recovery. According to the analysis, much depends on the $71,000 area transforming from a resistance level back into a reliable support zone. Key levels to watch include a lower support band between $60,000 and $62,000, with overhead resistance situated near $73,000.

A critical stress test arrives with the weekly open. The reopening of traditional markets on Monday will reveal whether the “risk-off” environment is genuinely abating or if renewed pressure will bear down on crypto assets once more.

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