Bitcoin [BTC] is trying to recover from the weekend dip that sent shockwaves through the markets. Bitcoin rebounded towards the $77,000-$77,500 zone after a sharp sell-off over the weekend.
The dip caused more than $2.5 billion in extended liquidations, sending the price down to a low of nearly $74,700.
Source: TradingView
From that moment on, the recovery began to take shape. Strong bidding emerged around the $74,800 support zone, while long downsides indicated aggressive buying at lower levels.
These fuses show that sellers tried to lower prices but failed. As the price recovered, trading volume normalized, indicating that the initial panic had subsided.
Momentum indicators support this stabilization. The RSI recovered towards the low 50s, reflecting balance rather than excess.
At the time of writing, the MACD bars were compressing, showing that selling pressure is easing. Still, the upside potential remains limited to $78,000-$80,000.
Until that zone is breached, the move reflects a recovery from liquidation stress rather than a confirmed trend reversal.
The accumulation of whales indicates confidence
Bitcoin is stabilizing after a sharp decline. Major investors are showing growing confidence in the expected recovery. The number of whale entities holding 1,000 BTC or more continues to rise to get up steadily.
This is an indication that they see the shift to the $74,000-$75,000 range as an opportunity to accumulate at lower prices, rather than as a reason to reduce exposure.
Source: Bitfinex/X
Meanwhile, private participants reduce exposure. Some of these sales reflect forced liquidations, while others reflect caution as smaller shareholders seek to safeguard their profits amid increased volatility.
As the price returns to $77,000, sentiment gradually improves. This shift supports whale accumulation, indicating cautious optimism around a recovery rather than widespread market stress.
BitcoinsThe whole remains vulnerable
The fear and greed Index indicates great caution in the crypto market.
At the time of writing, the reading has fallen to 14, putting sentiment deep into Extreme Fear and showing that confidence has weakened rather than stabilized.
Despite Bitcoin’s recent short-term rebound, many investors are still unconvinced and appear to be viewing the move as a potential pitfall before even more downsides arise.
Source: Alternative.me
That caution increased after that Kevin Warsh was nominated for the Federal Reserve, a developing market seen as reinforcing the aggressive policy outlook ahead of this weekend’s sell-off.
For a recovery, investors should look for sentiment to improve, volatility to decline and Bitcoin to maintain key support levels alongside stronger spot market demand.
Final thoughts
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Bitcoin’s recovery from $74,700 shows liquidation stress easing, although the price remains below $78,000-$80,000 without trend confirmation.
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Whale accumulation persists at retail, but ‘extreme fear’ signals selective confidence among fragile sentiment.