SKN | Bitcoin Rebounds 11% Above $65,000 as Institutions Step In: Who Is Buying the Dip?

Bitcoin staged a sharp rebound on Friday, climbing more than 11% above $65,000 after briefly plunging below $60,000, as signs emerged that institutional investors viewed the sell-off as a buy-the-dip opportunity. The recovery follows one of the most violent liquidation events of the current cycle, which wiped out billions of dollars across the crypto market and tested confidence after months of steady declines.

The bounce came after bitcoin fell to around $59,000 on Thursday, its lowest level in roughly 15 months. That move erased more than half of the gains from its October 2025 peak near $126,000 and marked a decisive break of several long-term technical levels. At publication time, bitcoin was trading near $71,000, though analysts caution that volatility remains elevated and sentiment fragile.

Liquidations Trigger Capitulation

The drop below $60,000 unleashed a wave of forced selling across derivatives markets. Data from CoinGlass shows that total crypto liquidations over a 24-hour period approached $2.6 billion, with long positions accounting for roughly $2.15 billion of that total. Bitcoin alone represented about $1.1 billion in liquidated long positions.

Such liquidation cascades tend to amplify price moves, as leveraged traders are automatically closed out when prices breach key thresholds. In this case, the flush appeared to clear a large portion of speculative excess that had built up during the prior rally, setting the stage for more price-insensitive buyers to step in.

Institutions Begin Accumulating

As retail traders were forced out, evidence surfaced that institutional players were quietly accumulating at lower levels. One of the most notable buyers was Binance’s Secure Asset Fund for Users, or SAFU — an insurance fund designed to protect customer assets. The fund reportedly purchased an additional 3,600 BTC, worth roughly $250 million, at prices around $65,000 per coin.

The move underscores a growing divergence in behavior between leveraged traders and longer-term allocators. While short-term participants were caught offside by the rapid sell-off, institutions with deeper pockets and longer horizons appear willing to add exposure when bitcoin trades below perceived fair value.

This pattern has historical precedent. Previous cycle lows have often been marked by aggressive liquidation events followed by accumulation from stronger hands, even as broader sentiment remains negative.

Shifting Technical Focus

From a market-structure perspective, attention is now turning to new support and resistance levels. After the rebound, analysts say the $65,000 zone has become an important near-term pivot, while $58,000 is increasingly viewed as the last major line of defense if selling pressure resumes.

The speed of the recovery suggests that demand exists at lower prices, but traders remain cautious about declaring a durable bottom. Macro uncertainty, ongoing outflows from some crypto investment products, and the broader risk-off tone in global markets continue to pose headwinds.

Psychology of the Dip

The episode highlights a familiar dynamic in crypto markets: periods of extreme fear often coincide with the emergence of dip buyers. For many institutional investors, sub-$60,000 bitcoin represented a level at which risk-reward skewed more favorably, particularly after a 50% drawdown from all-time highs.

At the same time, the rebound does not necessarily imply a return to bullish conditions. Historically, markets that suffer deep liquidations can enter prolonged consolidation phases, as confidence takes time to rebuild and leverage remains subdued.

Watching the Next Move

Whether the latest bounce evolves into a sustained recovery will depend on follow-through from institutional flows and a stabilization in derivatives positioning. For now, the price action suggests that while panic selling dominated the downside move, strategic buyers were waiting just below the market.

As bitcoin continues to trade well below its prior highs, the tug-of-war between fearful sellers and opportunistic buyers is likely to define the next phase of the cycle, with $58,000 to $65,000 emerging as the critical battleground.