Bitcoin has entered a turbulent phase marked by sharp selling pressure and heightened volatility, leading some analysts to label the current correction as a capitulation event. Across the market, investors are realizing losses, while overleveraged traders continue to face liquidation cascades as Bitcoin struggles to find a stable footing. Despite the ongoing drawdown, however, fresh capital continues to enter the market, suggesting that not all players are retreating.
According to CryptoQuant, over the past 30 days, approximately $5.4 billion in cash has flowed into the market. This data highlights a critical divergence: while many short-term traders are exiting at a loss, deep-pocketed buyers appear to be stepping in to accumulate during weakness.
This kind of buying activity often reflects confidence from institutional investors and large holders who view current weakness as an opportunity rather than a threat. The ability of the market to attract fresh inflows, even amid volatility, indicates that underlying sentiment and long-term conviction remain intact. Historically, similar accumulation phases during sharp drawdowns have preceded major relief rallies once selling pressure subsides.
Adding to the optimism, analysts believe that the upcoming U.S. government reopening could serve as a macro catalyst for recovery. The event is expected to restore market liquidity and reduce uncertainty around fiscal policy, potentially triggering renewed risk appetite across financial markets. Combined with steady on-chain accumulation, these factors could lay the groundwork for Bitcoin to regain momentum and retest the $110K resistance zone in the coming weeks.
Bitcoin’s weekly chart shows the asset testing a major support area after one of its steepest pullbacks of the year. Following a sharp drop from $110,000 to below $100,000, BTC is now consolidating around $103,000, just above the 50-week moving average (blue line) — a historically critical level that has often defined mid-cycle corrections.
If this zone holds, it could mark the base for a potential recovery phase. However, a weekly close below the 50-week MA would raise the risk of a deeper decline toward the 200-week MA near $80,000, which hasn’t been tested since early 2023.
The market structure remains neutral-to-bearish in the short term. Bitcoin has repeatedly failed to sustain above the $117,500 resistance — a key level that previously acted as support — indicating that bulls are losing momentum. Volume spikes during the selloff confirm strong liquidation activity, suggesting capitulation among short-term holders.
For sentiment to shift, BTC must reclaim the $110,000–$112,000 range to invalidate the bearish breakdown. Until then, the focus remains on whether buyers can maintain control above $100,000, as that psychological level will likely determine the direction of the next major move.
Featured image from ChatGPT, chart from TradingView.com
