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Instead of triggering panic, Bitcoin's recent dive toward the $60,000 area produced the opposite effect - a powerful wave of buying. Paradoxically, as Glassnode reports in its latest Bitcoin market review, retail investors did indeed freeze in anticipation of the worst during this test of the February lows.
However, large investors began aggressively buying the cheaper coins. As a result, the price quickly returned to the $65,600–$66,000 area by the start of this week.
This behind-the-scenes battle between bears and bulls was clearly reflected in analysts' main on-chain radar - the Accumulation Trend Score metric, which evaluates wallet size and the pace of balance growth, reversed sharply upward and came close to the maximum value of one.
Chart shows how, in early June, the entire wallet grid - from micro-balances to huge institutional whales - synchronously turned deep blue and cyan. Glassnode experts directly describe this as a classic example of a "buy-the-dip" structure, where a falling chart runs into a wall of incoming demand.
Investors did not merely block further selling, but began massively vacuuming up the market, absorbing any available supply.
Why Bitcoin's drop to $60,000 turned out to be a trap for short sellers
This internal shortage of coins coincided just timely with a strong inflow of fresh capital from the traditional financial sector. U.S. spot Bitcoin ETFs recorded a net inflow of $85.85 million last Friday, reinforcing on-chain optimism with real fiat money. The long-awaited de-escalation in the Middle East also added fuel to the fire, while the prospect of an official ceasefire agreement as early as June 19 returned risk appetite to global markets.
Such unity across all holder cohorts inside the network, combined with a positive external backdrop, shows that the drop to $60,000 transformed from a reason for fear into an ideal launchpad for a new rally.
If the current rally continues, then judging by the historical distribution zones on the same chart, the nearest barrier for Bitcoin sits in the $69,000-$70,000 area, where previous peak profit-taking zones were set.
A breakout and consolidation above the current $66,610 price point would open a direct path to the next dense technical barrier at $68,155, the 0.382 Fibonacci level, after which the main battle for the psychological $70,000 level would begin.
U.Today Editorial Team
Dan Burgin
