Bitcoin Shows Signs of Recovery After Sharp Price Drop
The Essentials at a Glance
- Bitcoin (BTC) experienced a sharp decline with massive liquidations.
- On-chain data suggests a potential market recovery.
- Bitcoin’s Realized Cap reached a new all-time high.
- Indicators such as the Fear & Greed Index and new wallet addresses show increasing investor interest.
- A “healthy reset” could prepare BTC for the next upswing.
Sharp Price Decline: Market Cleansing Underway
Over the past two weeks, Bitcoin has seen a significant price drop. The trigger was a wave of sell orders in the perpetual swaps market – i.e., perpetual futures contracts. This led to a cascade of long liquidations. As a result, open interest – the total value of open positions – fell by over $10 billion from its peak of $80 billion.
Such a decline indicates a market cleansing. Many short-term investors (“weak hands”) were pushed out of the market. At the same time, early signs of stabilization are emerging, suggesting a possible bottom formation.
Realized Cap Reaches Record High
An important indicator of market sentiment is the so-called Realized Cap – an alternative market capitalization based on the prices at which Bitcoins were last moved. According to data from CryptoQuant, this value currently stands at $935.10 billion – a new all-time high.
This means that many Bitcoins have recently been moved at higher prices. Investors are not panic selling, but accumulating. This indicates confidence in the current price range and suggests a possible trend reversal.
Fear & Greed Index: Sentiment Turns Positive
The Fear & Greed Index measures market sentiment based on various factors such as volatility, trading volume, and social media. After the recent political shock, the index dropped to 46 – a value in the “fear” zone. It has since risen to 55. This brings it closer to the “greed” zone, which has historically often been associated with price increases.
Such movements show that investors’ risk appetite is increasing again. Especially during periods of heightened uncertainty, a rise in the index can signal upcoming buying waves.
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New Wallets: Fresh Capital Enters the Market
The number of new Bitcoin addresses is also an important early indicator. After a brief lull, this figure is rising again. This shows that new investors are entering the market, driven by the fear of missing out on a possible rally (FOMO – Fear Of Missing Out).
A concrete example: On June 4, around 10,000 BTC worth approximately $1 billion were withdrawn from spot exchanges – at a price of $104,700 per coin. Such outflows often indicate long-term investments and support the thesis of a potential market bottom.
Technical Consolidation Instead of Panic
The recent 14-day correction was not a panic reaction but a technical reset. The market has cleared out overleveraged positions. This is a natural process during volatile phases and creates room for sustainable growth.
Currently, Bitcoin is trading at around $105,000. Many analysts see this range as a potential springboard for the next upward movement – supported by fundamentals and market psychology.
Our Assessment
Current data shows: the market has recovered well from the recent shockwave. Key indicators such as the Realized Cap, the Fear & Greed Index, and the number of new wallets point to stabilization. While it is too early to speak of a confirmed bottom, the signs suggest a healthy market structure.
For you as an investor, this means: monitor developments closely. The current price range could prove to be an attractive entry point – provided you follow a long-term strategy and are aware of the risks.
Sources
- CryptoQuant
- Glassnode
| Symbol | BTC |
| Coin type | Alt Coin |
| Transaction Speed | Slow |
| Pros |
|
| Cons |
|
| Further practical applications | |
| Price | 105677 |
| 24h % | 0.10 % |
| 7d % | 0.23 % |
| 30d % | 2.61 % |
| 60d % | 28.43 % |
| 1y % | 52.50 % |
| Market Cap | $2,100,512,225,099.00 |
| Max. Supply | 21,000,000.00 |
| Official Links | Website | Whitepaper | Source Code |
| Socials | Reddit | X | Message Board |
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