Bitcoin strengthened on Wednesday, surging past the $62,000 mark after rebounding from its recent local low of $57,735. The leading cryptocurrency climbed as high as $62,137 during the day, marking an approximately 3% increase over the previous 24 hours.
Whale accumulation and liquidations fuel the rally
On-chain data revealed that large Bitcoin investors accumulated nearly 270,000 BTC during the recent downturn. This development has reinforced the perception that long-term holders are viewing current price levels as appealing for further accumulation.
According to Scott Melker, the purchase of 270,000 BTC around the $59,000 level represents the largest single accumulation spike ever observed on-chain—surpassing the wave of buying during the COVID-19 crash and the FTX collapse.
The recovery also triggered a wave of liquidations in the futures markets. Data from Coinglass shows that leveraged positions totaling over $606 million were closed in the past 24 hours. Most of the losses affected investors who had bet against the market, while the liquidation of short positions added further upward pressure to the price.
Coinglass is recognized as a widely used platform for tracking liquidation data within crypto derivatives markets.
Glossary: Liquidation is the automatic closure of a leveraged position by an exchange when the investor’s collateral becomes insufficient. The liquidation of short positions in a rising market can increase buying pressure and push prices higher.
Scott Melker suggested that this significant whale buying may be signaling a local bottom for Bitcoin. Order book analysis indicates heavy sell orders are clustered between $62,000 and $65,000, while the $55,000 to $57,000 range is dominated by strong buy orders.
| Indicator | Level |
|---|---|
| Intraday high | $62,137 |
| Local low | $57,735 |
| Sell pressure | $62,000 to $65,000 |
| Support area | $55,000 to $57,000 |
All eyes on the $65,000 barrier
Market analysts highlight that if Bitcoin can decisively break above $65,000, supported by strong spot demand, there could be additional upside potential of 8% to 10% in the short term. However, sustainability of buying interest in spot markets will be critical for this scenario to play out.
Ted pointed out that while significant sell orders exist between $62,000 and $65,000, there is a persistent accumulation of large buy orders between $55,000 and $57,000. If Bitcoin breaks above $65,000 with robust spot demand, a swift upward move is possible.
Macro pressures keep investors cautious
Despite Bitcoin’s solid recovery, a cautious tone prevails across the broader crypto market. Concerns over inflation and uncertainty surrounding U.S. Federal Reserve interest rate policy continue to curb risk appetite. Elevated bond yields and a strong U.S. dollar are also dampening demand for digital assets.
Meanwhile, capital flows have shifted towards shares linked to artificial intelligence, pulling potential new funds away from crypto assets. Appetite from institutional investors is also seen as less robust compared to previous periods. Ongoing outflows from U.S.-listed spot Bitcoin ETFs suggest that some major investors remain cautious, even as Bitcoin rebounds above $60,000.
Some analysts warn that a broader downturn in the S&P 500 could spill over into the crypto sector. As a result, investors are closely monitoring whether Bitcoin buyers can overcome the stiff resistance between $62,000 and $65,000 as the price stays above $60,000.
