Bitcoin Stages Sharp Recovery Back to $70,000 After Plunging to $60,000 in Week’s Dramatic Sell-off

Bitcoin, the world’s largest cryptocurrency, made a remarkable comeback this week, surging back above the $70,000 mark after a punishing sell-off earlier in the week drove the digital asset to a low of approximately $60,000 — its weakest level in months. The volatile roundtrip has left traders divided over whether the worst is over or whether the bounce is merely a temporary reprieve.

At its lowest point during the sell-off, Bitcoin briefly dipped below $60,500, triggering a cascade of liquidations across crypto exchanges before aggressive buying reclaimed the $70,000 level within days.

What Caused the Drop to $60,000?

Several forces combined to drag Bitcoin to its lowest point in months:

A broader riskoff wave in global markets, with equities, commodities, and crypto all coming under pressure simultaneously as investors rotated into safer assets like gold and Treasuries.

Massive leveraged liquidations played a key role, with over $2 billion in long positions wiped out across major exchanges as prices cascaded below critical support levels.

Weakening spot Bitcoin ETF flows, with multiple consecutive days of net outflows from U.S. listed spot Bitcoin ETFs adding sustained selling pressure.

Macroeconomic anxiety, including persistent inflation concerns and shifting expectations around Federal Reserve policy, dampened appetite for speculative assets.

Political uncertainty surrounding policy directions under President Trump’s administration also weighed on sentiment, even as some crypto friendly rhetoric had earlier buoyed the market.

What Sparked the Rebound?

The recovery from $60,000 back to $70,000 was equally dramatic and driven by several converging factors:

Oversold technical conditions attracted buyers. Bitcoin’s Relative Strength Index (RSI) fell to levels not seen since previous major market bottoms, signaling to technical traders that the selling had been overdone.

Aggressive accumulation by large holders. Onchain data showed that so called “whale wallets” — addresses holding more than 1,000 BTC — added significantly to their positions during the dip below $65,000.

Short seller liquidations fueled the recovery. As prices began climbing, bearish traders who had bet on further declines were forced to buy back their positions, accelerating the upward momentum.

A renewed wave of spot ETF inflows returned as institutional investors appeared to view the $60,000 level as an attractive entry point.

Stabilization in broader financial markets, with U.S. equities rebounding from their own sell-off, helped restore a degree of risk appetite across asset classes.

What Analysts Are Saying

The dramatic price swing has generated sharp debate across the crypto community:

Bulls argue the bounce from $60,000 was a classic “capitulation wick” — a moment where panic selling exhausts itself and longterm buyers step in. They point to healthy onchain metrics and renewed ETF demand as evidence that the market’s structural foundation remains strong.

Bears caution that the rebound could be a “dead cat bounce” — a temporary recovery in a downtrend before prices resume falling. They note that macroeconomic headwinds⁶ haven’t disappeared and that Bitcoin failed to reclaim its previous highs above $75,000.

Neutral observers emphasize that the $60,000–$70,000 range is now the key battleground. A sustained hold above $70,000 could restore bullish confidence, while a failure to hold could set the stage for a retest of $60,000 — or lower.

Key Levels to Watch

What This Means for Traders and Investors

Short-term traders are watching whether Bitcoin can sustain its position above $70,000. A failure to hold this level in the coming days could signal another leg lower.

Longterm holders (“HODLers”) may view the dip to $60,000 as a buying opportunity, especially if they maintain conviction in Bitcoin’s longterm value proposition.

Risk management matters more than ever. The speed and severity of this week’s moves — a 15%+ drop followed by a 15%+ recovery — highlight how volatile crypto markets can be and underscore the importance of position sizing and stoploss strategies.

Conclusion

Bitcoin’s wild swing from $70,000 down to $60,000 and back again in a matter of days underscores the extreme volatility that continues to define cryptocurrency markets. While the bounce has offered short-term relief to investors, the broader macro environment — including Fed policy uncertainty, global risk sentiment, and shifting ETF flows — will ultimately determine whether this recovery holds or gives way to renewed selling.

For now, all eyes are on whether $70,000 becomes a floor for the next move higher — or a ceiling before the next drop.

Disclaimers: All contents in this article are for informational purposes only and do not constitute any form of advice. Third party websites and their content are provided for informational purposes and user convenience only. We do not control, endorse, or assume responsibility for any third party websites, including their content, accuracy, privacy practices, or any subsequent changes or updates made to them. This article is AI assisted and has been reviewed by our editorial team.