Summary
- Bitcoin rose 7.5% from a low of $59,353 on Friday to reach $63,800 on Monday.
- The weekend's price recovery resulted in the liquidation of $540 million in short positions on Sunday, marking the highest figure since mid-April.
- Experts caution that this rebound does not yet indicate a reversal of the prevailing trend.
Following a selloff last week, Bitcoin experienced a significant recovery over the weekend, leading to the liquidation of many late short positions.
Bitcoin climbed to a peak of $63,800 on Monday, reflecting a 7.5% increase from Saturday’s low of $59,353, as reported by CoinGecko data. Currently, it is trading around $63,350, showing a daily increase of 2.4%.
On Sunday, Bitcoin's surge led to the liquidation of approximately $539 million in crypto shorts, the highest since the crash on April 17, based on data from CoinGlass. In total, crypto liquidations exceeded $588 million in the last 24 hours, with short positions accounting for $444 million of that total.
This selloff was not confined to cryptocurrencies alone. The S&P 500 index fell by 2.90% on Friday and is down about 2.70% from its peak of 7,632. Additionally, South Korea’s KOSPI index experienced an over 8% drop on Monday, triggering a circuit breaker.
Paul Howard, Senior Director at Wincent, stated to Decrypt, “The large outflows last week were a response from institutions to macroeconomic news, while the KOSPI’s significant decline underscores the broader challenges facing risk assets amid escalating tensions in the Middle East.”
After the weekend's recovery, Bitcoin's total open interest stands at approximately 255,000 BTC, down from Friday's high of 285,000 BTC. This drop suggests a short squeeze or a mass closure of short positions as prices moved against these investors, further propelling the recovery, according to Velo data.
The cumulative volume delta for both spot and perpetual markets has increased since Friday's low, suggesting a rise in buying interest in both segments.
Moreover, the Coinbase premium index, which tracks demand from U.S. investors, has improved from -0.048 last week to -0.035, although it remains negative, indicating that U.S. demand has not fully returned.
Nonetheless, experts maintain a bearish outlook moving forward, as conveyed to Decrypt.
Future Outlook for Bitcoin
Although Bitcoin's recovery to $63,000 is notable, the overall sentiment remains bearish, with the Crypto Fear and Greed index currently at 8, the lowest since late February 2026.
Users of Myriad, a prediction market under Decrypt’s parent company Dastan, reflect this negative sentiment, having shifted to a bearish stance last Tuesday, now predicting a 73% likelihood that Bitcoin will drop to $55,000 rather than rise to $85,000.
“With CME BTC volatility hovering around 50, a level seen only a few times in the past year, I remain skeptical that this rally will last,” Howard noted.
According to SoSoValue, spot Bitcoin ETFs, which act as a gauge for U.S. demand, experienced $1.72 billion in outflows last week.
The recent sell-off pushed Bitcoin below its 200-day simple moving average, a common indicator suggesting that the long-term bullish trend may be weakening.
Adam Haeems, Head of Asset Management at Tesseract Group, remarked to Decrypt, “When demand from major marginal buyers diminishes like this, long-term price levels come under pressure, irrespective of the actions of any individual seller.”
“U.S. spot Bitcoin ETFs recorded their fastest withdrawals ever, totaling approximately $4.4 billion over thirteen consecutive sessions, while a stronger-than-expected jobs report shifted U.S. rate expectations toward potential hikes rather than cuts, leading capital to flow into AI stocks and a busy listing schedule,” Haeems added.
He remains cautious, suggesting that the weekend's rebound is merely a “relief rally around a significant long-term level, and not yet a confirmed reversal.”