Bitcoin [BTC] is attempting a rebound after the weekend dip that sent shockwaves across the markets. Bitcoin rebounded toward the $77,000–$77,500 zone after a sharp weekend sell-off.

The dip triggered over $2.5 billion in long liquidations, forcing the price down to a low near $74,700.

From there, the rebound began to take shape. Strong bids emerged around the $74,800 support zone, while long downside wicks signaled aggressive buying at lower levels.

These wicks show that sellers attempted to push prices lower but failed. As the price recovered, trading volume normalized, suggesting that the initial panic had subsided.

Momentum indicators support this stabilization. RSI rebounded toward the low-50s, reflecting balance rather than excess.

At press time, the MACD bars were compressing, showing that selling pressure is fading. Still, upside remains capped below $78,000–$80,000.

Until that zone breaks, the move reflects recovery from liquidation stress rather than a confirmed trend reversal.

Whale accumulation signals confidence 

Bitcoin is stabilizing after a sharp decline. Large holders are showing growing confidence in the anticipated rebound. The number of whale entities holding 1,000 BTC or more continues to rise steadily.

This is an indication they view the move into the $74,000–$75,000 range as an opportunity to accumulate at lower prices rather than a reason to reduce exposure.

Meanwhile, retail participants are reducing exposure. Some of this selling reflects forced liquidations, while some reflects caution as smaller holders attempt to preserve profits amid heightened volatility.

As the price rebounds toward $77,000, sentiment improves gradually. This shift supports whale accumulation, suggesting cautious optimism around a recovery rather than widespread market stress.

Bitcoin’s sentiment remains fragile

The Fear and Greed Index points to strong caution in the crypto market.

At press time, the reading fell to 14, placing sentiment deep in Extreme Fear and showing that confidence has continued to weaken rather than stabilize.

Despite Bitcoin’s recent short-term rebound, many investors remain unconvinced and appear to treat the move as a possible trap before further downside.

That caution increased after Kevin Warsh was nominated to the Federal Reserve, a development markets viewed as reinforcing a hawkish policy outlook ahead of the weekend sell-off.

For recovery, investors should watch for sentiment to improve, volatility to ease, and Bitcoin to hold key support levels alongside stronger spot demand.

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Final Thoughts

• Bitcoin’s rebound from $74,700 shows liquidation stress easing, though price remains capped below $78,000–$80,000 without trend confirmation.

• Whale accumulation persists amid retail, yet ‘extreme fear’ points to selective confidence under fragile sentiment.

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