The market is once again starting to question whether cryptocurrencies have already formed a bottom.
Technically, this controversy is understandable. Although Bitcoin (BTC) closed the first quarter down 22.4%, the price action in March showed resilience.
Bitcoin Still generating a monthly return of 1.8%, the structure included a strong bullish wick to $76K, indicating that buyers remain active even during risk-off conditions.
More importantly, Bitcoin’s reaction in the first 24 hours after US President Donald Trump announced the ceasefire adds another layer to the current situation.
According to CryptoQuant data, Bitcoin has returned above the lowest achieved price for traders ($69.4K), effectively flipping a key on-chain level from resistance to support after several weeks of repeated rejection.
For context, this metric represents the average cost basis for new market participants. Naturally, a sustained move above this level is interpreted as a sign of improving market confidence.
Additionally, the Coinbase Premium Bitcoin Index also turned positive after the ceasefire announcement, indicating increased demand from US-based investors.
Taken together, Bitcoin price action before and after the ceasefire is starting to look more positive.
The logic is simple: resilience during periods of FUD in the market now pushes more investors back into the territory of unrealized gains, which tends to incentivize cash-on-distribution holding behavior in the short term.
Technically, this matters more. Bitcoin is still more than 40% below its peak of $126,000, meaning a large portion of market participants are still underwater.
Naturally, the question becomes whether this shift in positions and sentiments is strong enough to constitute a real structural bottom.
Notably, the timing of the recent market event suggests that this scenario may not be so far-fetched.
Is Bitcoin short signal a failure or just a temporary squeeze?
The market still looks fragile, although the recent ceasefire has brought some relief in the short term.
In such settings, even a small FUD-driven trigger can be enough to trigger panic selling. The recent whale movement is a clear example of this dynamic.
user It is said that it has been identified A Bitcoin whale linked to Eric Trump opens a highly leveraged short position of 40x, with a liquidation level of around $71.9K.
However, the fear and greed index in cryptocurrencies has not subsided. As the chart below shows, the index continues to move around the 45 area, a “neutral” area that has historically been associated with phases of accumulation.
This setup is gaining further support from BlackRock with the addition of $269 million worth of BTC inflows and a strategy allocation of $72 million.
In short, this successful stress test indicates one of the strongest confirmations of Bitcoin’s momentum to date.
From a technical standpoint, it appears that the position has already been squeezed, as Bitcoin closed the session having lost as much as $73,000.
Key takeaway? This is not a random move. Instead, it is consistent with stronger on-chain signals and clear accumulation, reinforcing the idea that a bottom may be forming, with market resilience now starting to translate into technical gains.
Final summary
- Bitcoin is showing early bottom signs as it reclaims key levels and shows a stronger buildup.
- Despite the bearish situation, price resilience and quick recovery suggest that buyers are absorbing selling pressure.
