- Bitcoin faced a sharp shakeout, with billions wiped out.
- Early signs of exhaustion hint at a potential macro bottom, setting the stage for a market reset.
The last two weeks dealt Bitcoin [BTC] a serious shakeout.
Sell orders flooded the perpetual swap market, triggering a brutal cascade of long liquidations that wiped billions off the board and slashed Open Interest by over $10 billion from its $80 billion peak.
That said, signs of exhaustion are starting to surface. According to AMBCrypto, the puzzle pieces are falling into place for a potential macro bottom.
Does this mean the shakeout was the “reset” investors have been waiting for?
Market detox in action: Weak hands out, strong support in
As AMBCrypto pointed out, the recent political fallout sparked a serious shakeout, with nearly $1 billion in crypto liquidated in a flash.
Bitcoin took a hit too, dropping around 10% and bottoming out at $100,421. For many, that looked like a golden entry at a steep discount.
True to form, BTC bounced back quickly, climbing 5.2% in under three days, reclaiming nearly half of what it lost. Sure, this rebound is minor, and It’s still too early to call a definitive “market bottom.”
But according to fresh data from CryptoQuant, early signs of a turnaround are starting to show. Beginning with Bitcoin’s Realized Cap, which has just hit a new all-time high of $935.10 billion.
Source: CryptoQuant
A high Realized Cap means a lot of Bitcoin has been moving around at higher prices recently. It’s a sign that people are still confident and stacking their coins instead of freaking out and selling off.
This shift in market psychology is key. It shows traders are eyeing BTC’s current price as a sweet spot to load up. Basically, it reinforces a potential bottom that could pay off big down the road.
To back this up, AMBCrypto dove into other on-chain metrics that support the idea of an impending market turnaround.
FOMO: The market emotion that could launch Bitcoin higher
Few indicators capture FOMO quite like the Fear and Greed Index. Following the recent political fallout, it tanked to 46, teetering on fear territory before bouncing sharply back to 55.
Push it a little further, and it’ll hit the “greed” zone. Historically, a classic green light for accumulation rallies where risk appetite heats up and investors start loading up with conviction.
And it’s not just the old hands getting in. The number of new Bitcoin addresses has turned positive too after a few quiet days, meaning even new buyers are feeling that FOMO kick in.
Source: Glassnode
Put it all together, technical signals and trader psychology, and a solid macro bottom is shaping up.
Take the 4th of June: Around 10k BTC vaulted off spot exchanges at $104,700 each, backing AMBCrypto’s thesis.
The recent 14-day deleveraging wasn’t a meltdown but a “healthy reset,” clearing weak hands and priming Bitcoin for its next leg up.
At $105k, BTC is sitting on a springboard ready to launch.
