Is Bitcoin Price Ready for a Recovery After an Extremely Bearish Week

Bitcoin ETFs registered $330.7 million worth of inflows on Friday. This also coincided with the sharp bounce back, which saw the Bitcoin USD price surge by over 12% on Friday.

BTC Price Faces Volatility Risks Driven by High Leverage Appetite

Prior to the recent crash, there were Bitcoin price predictions suggesting that the king of the cryptos may fall below $60,000. Just like clockwork, those predictions were fulfilled this week.

However, the same key price zone may now be treated as major support, with bullish expectations returning to the market. This was evident by the heavy liquidations that occurred on Saturday morning.

The Bitcoin price recovered as high as $71,000 but has since retreated to $67,500 at press time. This pullback triggered over $119 million worth of Bitcoin long liquidations.

Bitcoin short liquidations were even higher at $273 million during the same period. These findings confirmed a significantly elevated appetite for leverage despite the highly volatile market conditions this week.

The surge in longs suggests that many buyers anticipated a sharp recovery. On the other hand, the higher number of shorts liquidated in the last 24 hours suggests the market anticipated more downside.

Although liquidations remained elevated over the last 24 hours, they cooled substantially from their weekly high. Bitcoin long liquidations pushed above $1 billion on Thursday. This was the second-highest liquidation event since 10 October last year.

Global Interest in Bitcoin Makes a Comeback

The last time Bitcoin was oversold, as it was this week, was in 2022. Consequently, analysts anticipate robust demand at the extremely discounted levels. Interestingly, the recent crash also led to a massive spike in attention towards Bitcoin.

According to Google Trends, searches for Bitcoin across the globe have been rising. Not only that, but they just pushed to the highest levels observed in the last 12 months.

Bitcoin Interest Over Time

Rising searches may have reflected a resurgence in demand. Bitcoin spot inflows pushed above $1 billion on Friday. This was the highest daily spot inflow recorded in the last 12 months.

This massive demand surge was responsible for the sharp uptick during the same session. It also signaled that most market participants were ready for a recovery. However, whale inflows remained weak. That suggests this important category of holders was not yet FOMOing in.

This observation could indicate that full recovery may not yet be on the cards. This reflects the extreme fear sentiment that prevailed in the market. Bitcoin USD market sentiment was down to record lows. Liquidity flows also favored gold in the last 24 hours, suggesting that investors were still leaning towards safe-haven assets.