On June 5, Bitcoin [BTC] completed a bearish impulse price move, falling from $74.5k to $59.1k in a week. From a low of $60,780 on June 9, Bitcoin rose to $67,292 on June 15.
AMBCrypto reported that the Spot ETF’s flows remained bearish for five weeks, but the price continued to bounce. The rebound was part of a healthy market pullback, but did not mean a bullish trend would emerge.
Evidence that Bitcoin’s trend remained unchanged
Optimism over the US-Iran peace deal may have boosted sentiment in the short term, but a threatened tightening by the Bank of Japan could reverse the recent rebound. Growing stress among miners also highlighted the potential for a deeper decline.
On the other hand, crypto analyst Axel Adler Jr. that Bitcoin’s $60,000 surge was caused by repeat buyers rather than a short squeeze.
The analyst noted that eight of the 10 previous trading days showed values above 1.0, meaning aggressive buyers are in control. Since it is the takers that are driving the price movements, the price is up almost 12% since the low of $59.1k.
The market has undergone a turnaround in order flow and has been favorable for buyers in the short term.
The funding rate was also positive during the upturn. If it had been a short squeeze, Funding Rates would have been negative, the analyst concluded. Instead, the positive numbers meant that long leverage was already back on the market.
It shows that market participants are confident enough to pay to keep their long positions open. Steady demand and positive financing rates would help keep the aid rally going. A slowdown in demand could be an early sign of changing sentiment.
Recovery takes place on “thin ice”
In a weekly report, Glassnode pointed out that there is spot volume collapsed 40.4% in the past week. Futures Open Interest fell 3% despite the rebound, a sign that new conviction was limited.
On-chain activity was also relatively quieter, as active addresses fell 6.3% and entity-adjusted transfer volume fell 38.8%. Profitability among holders was also emphasized.
Although buyer dynamics were more constructive, overall the recovery was still on thin ice.
Final summary
- Bitcoin’s surge below $60,000 was not just a short squeeze, but a result of an aggressive resurgence of buyers.
- Despite this revival, quiet on-chain activity, reduced spot volume, miner stress and unprofitable holders underlined the fragility of this move.