What Caused the Sudden Crash and Fast Recovery?

[asriloni]

Did anyone else notice the sharp move this morning? Seeing Bitcoin drop to around $60,000 was surprising, especially after the slow decline we’ve had since last year’s peak.
It looked like a classic liquidation cascade, where too many leveraged positions were forced to close at the same time. What stands out even more is the strong rebound back toward $71,000 later in the day. This suggests there was significant “buy the dip” demand waiting at lower levels.
We’ve seen similar V-shaped recoveries in previous cycles, often near local bottoms when selling pressure becomes exhausted. However, these moves can also turn out to be temporary relief rallies if broader market conditions remain weak.

Do you think this move represents a capitulation event, or just another relief rally before continuation lower?

It's just another relief rally before btc goes even lower. It's called a dead cat bounce. It's a small recovery happened due to the optimism to buy the dip. Yet it's gonna drop even further. The recovery ishappening just to fool the investors to think if Bitcoin is raising up again.
Beside that it's also to liquidated so many liquidity in the short position. It's usually happening during the big crash like this.

Since the bearish pennant and head-shoulder already confirmed. We are yet to go up. It seems we're gonna face another dump again very soon. There many liquidity in long position. So it tells us where candle is going soon.

[Swordsoffreedom]

As usual moment when bitcoin getting sudden crash always has fast recovery, before bitcoin dropping to $60k has great moment bitcoin raise higher price above $120k and suddenly dump to $102k but success recovery in short moment up to $115k. The same moment right now when bitcoin dropping until $60k without few days bitcoin have been success break out more than 20% by raising to $71k and looks how faster bitcoin recovery after sudden crash.

This dependson the market situation. In a bull market, when Bitcoin experiences a sudden drop, it will recover very quickly afterward and may even create new ATH as you mentioned. However, in a bear market, price rallies following sharp declines are often only temporary recoveries before prices continue to fall even further. In other words, it was just a dead cat bounce.

Note that the bull market has ended and we are now in a bear market. Bitcoin's volatility at this stage will be completely different from what happen in a bull market. Therefore, any recovery should be viewed with caution, as it is often only temporary, and not a sign of a reversal of the trend.

[LogitechMouse]

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However, these moves can also turn out to be temporary relief rallies if broader market conditions remain weak.

Do you think this move represents a capitulation event, or just another relief rally before continuation lower?

As somebody that's been into crypto for quite some time, seeing Bitcoin dropping to as low as $60,000 wasn't surprising anymore. I mean I've seen way deeper corrections in the past.

Now as for the rebound, also it isn't surprising anymore. The best example for this one is the 2020 drop where Bitcoin dropped from around $8,000 to around $4,000 in just a few days just because of the WHO announcing the pandemic. After reaching the bottom, Bitcoin made a V-recovery just like what happened this time.

These V-recovery moves might be a "relief bounce" towards another downwards movement in the future. It happened when Bitcoin reached as high as $98,000 a few weeks ago only for it to go down to as low as $60,000. It might happen again this time. A relief bounce then a downwards movement. If you will ask me, we are already in the bear market so these bounces will create lower highs and lower lows.

[Silikiem]

The sudden crash doesn't really need explanation and the fast recovery is because the market decided that the price is highly undervalued.
Just remember that when there is a crash and the crash just got too deep it seemingly abnormal, there is a high chance people buying back in masses and the price will swiftly recover.
That just how the market works.

The bitcoin market largely moves in a way that no one can predict what will happen in the next minutes, of course whenever bitcoin crashes deeply like this people or investors will always try to buy more at such a reduced price and when this happens bitcoin tends to recover. But then again, bitcoin have several factors responsible for its volatility and most of this factors are very much unknown to us so no one can really say the exact cause of this volatility but one thing is for sure that it will always recover despite going down at some point in time.

[Ndabagi01]

Do you think this move represents a capitulation event, or just another relief rally before continuation lower?

I feel that the market will still go lower which signifies another rally before the market continuation go lower. The market has performed so well in the just concluded bull run, we should be happy that the market performed exceptionally well and it was just the high expectations and demand of the people that were not meant that actually made many to still be hoping that the market will bounce back after falling off the $100K demand zone and can’t recapture it again. Let’s get more realistic, the market is not working with our emotions neither will it use that to show how the trend of the market will go, so let’s get over it and welcome the bear market which is full of a lot of opportunities to tap into in order to be better positioned for the next big bull run.

[Dave1]

Do you think this move represents a capitulation event, or just another relief rally before continuation lower?

I feel that the market will still go lower which signifies another rally before the market continuation go lower. The market has performed so well in the just concluded bull run, we should be happy that the market performed exceptionally well and it was just the high expectations and demand of the people that were not meant that actually made many to still be hoping that the market will bounce back after falling off the $100K demand zone and can’t recapture it again. Let’s get more realistic, the market is not working with our emotions neither will it use that to show how the trend of the market will go, so let’s get over it and welcome the bear market which is full of a lot of opportunities to tap into in order to be better positioned for the next big bull run.

In can recover, but not to the point that we are expecting because we're in the bearish trend already. And the sudden crash to recovery, it's just a normal as there are entity that could easily manipulate the price to their advantage, invest during the crash and then sold off when it has recovered. It's an open secret, that's why we advise newbies to be very careful on how they invest on bear market as it's very hard to see the price fluctuating and then going down hard.

And as you have said, we have to face the incoming bear market. It's inevitable, this is the cycle of our market, and as we gain experience thru multiple cycles, we can react with the right mindset. We should be really taking advantage of it as the market is down, we should accumulate or start our DCA and then hold for a long time or at least in the cycle to maximize our profits.

[beerlover]

The bitcoin market largely moves in a way that no one can predict what will happen in the next minutes, of course whenever bitcoin crashes deeply like this people or investors will always try to buy more at such a reduced price and when this happens bitcoin tends to recover. But then again, bitcoin have several factors responsible for its volatility and most of this factors are very much unknown to us so no one can really say the exact cause of this volatility but one thing is for sure that it will always recover despite going down at some point in time.

That is true for the short term, but its very wrong for the long term. Its clear that we are going to see the price crash even more this year, how do I know?

Because on the long term the cycles are always the same and this is the bear year and in bear years we fall roughly around 80% of the previous ATH, and our ATH was at 125k which means that we are not at the bottom yet and we will drop. Knowing this isn't some surprise, if you have seen the markets you know this, but of course you can't know what will happen tomorrow, because short term anything could happen.

[dansus021]

Market sentiment has been shaky since the nomination of Kevin Warsh as the new Fed Chair. His hawkish reputation (favoring higher interest rates) has caused a massive de-risking move across all "risk-on" assets -Forbes at least this what I hear from the news. But im still confused here since Trump said many times to Jerome Powel to cut the interest rates but why in the world he chose Kevin.

[justdimin]

The bitcoin market largely moves in a way that no one can predict what will happen in the next minutes, of course whenever bitcoin crashes deeply like this people or investors will always try to buy more at such a reduced price and when this happens bitcoin tends to recover. But then again, bitcoin have several factors responsible for its volatility and most of this factors are very much unknown to us so no one can really say the exact cause of this volatility but one thing is for sure that it will always recover despite going down at some point in time.

That is true for the short term, but its very wrong for the long term. Its clear that we are going to see the price crash even more this year, how do I know?

Because on the long term the cycles are always the same and this is the bear year and in bear years we fall roughly around 80% of the previous ATH, and our ATH was at 125k which means that we are not at the bottom yet and we will drop. Knowing this isn't some surprise, if you have seen the markets you know this, but of course you can't know what will happen tomorrow, because short term anything could happen.

This is true and every veteran in the crypto world knows the cycle and can see that it happened the same exact way all the time in our history and the same exact thing is happening right now.

The argument is simple, if I have seen the same exact thing happen all the time, then why would I need to change my expectations for our future? If we are seeing the same thing over and over again, then the expectation is that I am going to see that happen yet again, not something brand new like some people hope or claim.

[JeffBrad12]

Market sentiment has been shaky since the nomination of Kevin Warsh as the new Fed Chair. His hawkish reputation (favoring higher interest rates) has caused a massive de-risking move across all "risk-on" assets -Forbes at least this what I hear from the news. But im still confused here since Trump said many times to Jerome Powel to cut the interest rates but why in the world he chose Kevin.

That was the past, seems to have changed his stance now. But regardless, just one vote out of 12 vote for interest cut. Trump's stance to keep pushing the rate cut is indicative of this.
Though all things considered it seems we gonna have no change for the interest cut.

[EarnOnVictor]

Do you think this move represents a capitulation event, or just another relief rally before continuation lower?

Consider these important possibilities in case you see something like that in Bitcoin or any other financial assets:1.

1. Profit-taking activities after the dominant side had held the position for a long while.
2. The market met a hugely piled pending orders at that level. This triggers very strong volatilities.
3. Fresh orders entering the market by whales or big traders/investors.

[Yaunfitda]

Market sentiment has been shaky since the nomination of Kevin Warsh as the new Fed Chair. His hawkish reputation (favoring higher interest rates) has caused a massive de-risking move across all "risk-on" assets -Forbes at least this what I hear from the news. But im still confused here since Trump said many times to Jerome Powel to cut the interest rates but why in the world he chose Kevin.

That was the past, seems to have changed his stance now. But regardless, just one vote out of 12 vote for interest cut. Trump's stance to keep pushing the rate cut is indicative of this.
Though all things considered it seems we gonna have no change for the interest cut.

And given that there will be no chance for the interest cut, then we might see the market still going on a sideways patterns or worst, it could see a big decline again as this news is negative. For the reasons of sudden crash, still the geo-political things that is happening around and then the latest FUD on Epstein case that put a lot selling pressure in the market as Epstein's and his reputation is bad enough and now they are trying to attach him to Bitcoin specially in early years. And the obvious that we are in the bear market already. And like any other bear market, there will be some kind of news that will really have a negative impact and so we have to face it and then make some kind of adjustment  on the way we see the market (like continue to do DCA at the start of the bear market).

[dezoel]

This is true and every veteran in the crypto world knows the cycle and can see that it happened the same exact way all the time in our history and the same exact thing is happening right now.

The argument is simple, if I have seen the same exact thing happen all the time, then why would I need to change my expectations for our future? If we are seeing the same thing over and over again, then the expectation is that I am going to see that happen yet again, not something brand new like some people hope or claim.

This is where most people are wrong, they just hope and expect the growth to happen when it never happened, and that is going to end up being a problem. I know that's not going to be something people can enjoy, and I know it is not that easy to handle, but at the end of the day we are going to face this as something that will not be easy to handle because in reality we know what's going to happen and historical patterns are there and yet some people feel the need to say it will not do the same thing.

[Wiwo]

Do you think this move represents a capitulation event, or just another relief rally before continuation lower?

I feel that the market will still go lower which signifies another rally before the market continues to go lower. The market has performed so well in the just concluded bull run, we should be happy that the market performed exceptionally well and it was just the high expectations and demand of the people that were not meant to be that actually made many to still hope that the market will bounce back after falling off the $100K demand zone and can’t recapture it again. Let’s get more realistic, the market is not working with our emotions, nor will it use that to show how the trend of the market will go, so let’s get over it and welcome the bear market which is full of a lot of opportunities to tap into to be better positioned for the next big bull run.

Yes, market reality is far from emotional attachment and expectations. When the price was at $100,000, we were all expecting and rooting for a $150,000 Bitcoin price, which didn't happen this time, and it shows that a lot of market forces have caused the current price retracement we are seeing right now.

We must learn to accept whatever the market offers at the time and not think or expect the price of Bitcoin to continue in the direction we want it to go, so that when we don’t see that happening, we will not be disappointed.

[Iranus]

And given that there will be no chance for the interest cut, then we might see the market still going on a sideways patterns or worst, it could see a big decline again as this news is negative. For the reasons of sudden crash, still the geo-political things that is happening around and then the latest FUD on Epstein case that put a lot selling pressure in the market as Epstein's and his reputation is bad enough and now they are trying to attach him to Bitcoin specially in early years. And the obvious that we are in the bear market already. And like any other bear market, there will be some kind of news that will really have a negative impact and so we have to face it and then make some kind of adjustment  on the way we see the market (like continue to do DCA at the start of the bear market).

What guarantees that if the Fed cuts interest rates, the market will recover and bitcoin will rise? Do you remember 3 interest rate cuts in the last quarter of 2025? Instead of rising as we predicted, Bitcoin has fallen in price after each interest rate cut. Therefore, we should forget about cutting interest rates, as that will not save Bitcoin from the bear market.

The reason for Bitcoin decline is simply that the bull market has ended, and a bear market is inevitable. Bitcoin cannot rise forever without sometimes falling.

[348Judah]

For now as we are used to read anything can cause a sudden crash of the market because we are already in the beer season and the market is falling anyhow and at any time, though we are yet to experience any recovery from this fall because the market is still bearish, so if you're trading you have to be more careful at this time, well it is also an important season for those that are interested in buying to invest and hold till the market is profitable for them to sell at a reasoning right.

[Ishicryptic]

For now as we are used to read anything can cause a sudden crash of the market because we are already in the beer season and the market is falling anyhow and at any time, though we are yet to experience any recovery from this fall because the market is still bearish, so if you're trading you have to be more careful at this time, well it is also an important season for those that are interested in buying to invest and hold till the market is profitable for them to sell at a reasoning right.

From the look of the market trend it is quite clear that we are in the bear season and if this is actually the case we shouldn't expect any uptrend till further notice of when the bulls will chase the bears away. I think it is best to accept the market situation although we expected the bull run to be more bullish, a lot of us predicted $150k ATH in the bull circle. Price is currently $66k and it's looking like we're going round in a circle within this period, it can go up or dip further from here we have to watch and be prepared. What is certain is that this bearish market is a good time to accumulate more Bitcoin instead of being in panic to sell.

[Leahized]

The crash was not just suffered by Bitcoin but gold and others stocks also experienced a sharp fall on that Monday that market started to turn red up until yesterday when Bitcoin dropped to $60k. Reason for the crash is economic wise according to the news I saw. Since Bitcoin is experiencing the bear season, it's possible that this bounce from $60k to $70k might not remain for the longest of time, until the last quarter of this year, Bitcoin might not surge above $90k and below $50k.

Economic problems play the biggest role behind the current decline in Bitcoin prices. However, if the price of Bitcoin falls too quickly, there is nothing to worry about, because it is possible to recover very quickly. Since we are currently in a bear market, we should not panic at this time. In my opinion, this is a golden opportunity to buy bitcoin and try hard enough to fill the bag. Moreover, you should not focus on the price of Bitcoin because it is always unstable. In my opinion, Donald Trump played the biggest role in the fall in the price of Bitcoin.

[dunfida]

The crash was not just suffered by Bitcoin but gold and others stocks also experienced a sharp fall on that Monday that market started to turn red up until yesterday when Bitcoin dropped to $60k. Reason for the crash is economic wise according to the news I saw. Since Bitcoin is experiencing the bear season, it's possible that this bounce from $60k to $70k might not remain for the longest of time, until the last quarter of this year, Bitcoin might not surge above $90k and below $50k.

Economic problems play the biggest role behind the current decline in Bitcoin prices. However, if the price of Bitcoin falls too quickly, there is nothing to worry about, because it is possible to recover very quickly. Since we are currently in a bear market, we should not panic at this time. In my opinion, this is a golden opportunity to buy bitcoin and try hard enough to fill the bag. Moreover, you should not focus on the price of Bitcoin because it is always unstable. In my opinion, Donald Trump played the biggest role in the fall in the price of Bitcoin.

Wayback into those previous or early years on which the price could move out without any attached reason into it or simply there are no sentiments that would be attached into it but now we can already see out those obvious news that do really consider out that main reason on why the price do dip and make out some correction but actually recovery talks would be that still depending because there's no such precise or on point ways on how you would be able to determine on when that recovery would happen. The key on here is that you do know on how to play with the movements so that you would be able to maximize profitability on that way but of course it doesnt always mean about making up some profits because it can also cause up loses once the market would be that still going opposite on what you had predicted. This is why its always been that wise about on taking up that risks management properly.

Instead on freaking up yourself about these drops, why you wont be seeing these things for you to make up some position so that you can be able to find yourself that having the probability on making up some gains but just like been said that every entry would be having that corresponding considerations.

[SquallLeonhart]

And given that there will be no chance for the interest cut, then we might see the market still going on a sideways patterns or worst, it could see a big decline again as this news is negative. For the reasons of sudden crash, still the geo-political things that is happening around and then the latest FUD on Epstein case that put a lot selling pressure in the market as Epstein's and his reputation is bad enough and now they are trying to attach him to Bitcoin specially in early years. And the obvious that we are in the bear market already. And like any other bear market, there will be some kind of news that will really have a negative impact and so we have to face it and then make some kind of adjustment  on the way we see the market (like continue to do DCA at the start of the bear market).

I wouldn't say there is "no chance", trump is pushing for it and while I do think that FED isn't really interested in it, there will come a day when they will have to. Maybe that's not right now, but it may happen eventually and when that happens there could be some increase in price for bitcoin because there will be some people who will take their money out of the banks and put it in the crypto market.

That however will be short term because it will only impact that week but the overall sentiment on where the direction of bitcoin going won't change. So, if it happens during the bear run, sure it will be green for a little while but then it will keep on being red. We can't just hope for these news to turn the direction around.