Bitcoin experienced a notable rebound over the weekend, recovering approximately 7.5% from Friday’s low of $59,353 to reach a high of $63,800 on Monday. Currently, Bitcoin is trading at around $63,350, reflecting a daily increase of 2.4%. This weekend recovery was significant, leading to the liquidation of $539 million in short positions on Sunday — the highest level observed since the mid-April crash, according to data from CoinGlass.
The overall cryptocurrency market faced substantial challenges prior to this recovery. Notably, the S&P 500 index saw a decline of 2.90% on Friday, contributing to a decrease of around 2.70% from its all-time high. The situation was further exacerbated by a more than 8% drop in South Korea’s KOSPI index on Monday, which triggered a circuit breaker in response to volatile market conditions.
Paul Howard, Senior Director at Wincent, highlighted that last week’s large outflows from the market reflect institutional reactions to macroeconomic news. He also pointed out the broader pressure on risk assets stemming from escalating developments in the Middle East.
As a result of the weekend bounce, Bitcoin’s aggregated open interest, which represents total open positions in the market, decreased from a high of 285,000 BTC on Friday to approximately 255,000 BTC. This drop indicates a short squeeze or a significant closure of short positions, further buoying the price recovery. In addition, the aggregated spot and perpetual cumulative volume delta, which indicates buying versus selling pressure, has risen since Friday’s lows, suggesting increasing demand.
Despite the weekend’s positive price action, experts remain cautious about Bitcoin’s prospects. The Crypto Fear and Greed index currently sits at 8, marking the lowest level since late February 2026. Predictions made by users of Myriad, a prediction market owned by Decrypt’s parent company, indicate a 73% probability that Bitcoin’s next move will be a drop to $55,000, countering a scenario where it could rise to $85,000.
Howard expressed concerns about the sustainability of the rally, citing Bitcoin’s current volatility and market sentiment. Spot Bitcoin ETFs, which are often viewed as proxies for U.S. demand, experienced outflows amounting to $1.72 billion last week. This withdrawal trend continued, with a record of $4.4 billion exiting U.S. spot Bitcoin ETFs over 13 consecutive sessions.
Last week’s decline also pushed Bitcoin below its 200-day simple moving average, a technical indicator often seen as a sign that a long-term bullish trend may be unraveling. Adam Haeems, Head of Asset Management at Tesseract Group, emphasized that a decline in demand from significant market participants puts long-term price levels at risk, irrespective of individual selling actions.
As market participants digest recent developments and price movements, the overall sentiment remains predominantly bearish, with experts urging caution as Bitcoin navigates its next potential moves.
