To be honest, I've been watching this wave of Bitcoin lately, and it's quite obvious that while the market is still fearful, money has slowly started to flow towards it.
Currently, the price is around 72900 dollars, having risen nearly 3% in the last 24 hours. On the surface, it seems like a rebound, but the sentiment is actually still quite poor, with the fear and greed index at only 22. What does this indicate? It suggests that many people are calling for a rebound, but deep down, they're still hesitant and haven't fully recovered. Therefore, I think this wave of increase is more like a sentiment repair, rather than a particularly strong one-sided trend.
But I have to admit that the foundation of Bitcoin is indeed much stronger than many other coins.
You can see that whether it’s institutions, enterprises, or some large funds, if they really want to allocate, in the end, a lot of money will still flow to BTC. Because the more chaotic the market is, the more everyone will look for the most consensus, best liquidity, and the thing that can accommodate large funds. In plain terms, other coins can tell stories, but Bitcoin can hold money, and that’s the difference.
In this round of rally, there is a very obvious point, which is that the bears have been thoroughly beaten. There were too many people looking bearish before, and a pile of short positions accumulated. As a result, when the price went up, it directly triggered a series of short squeezes, the bears closed their positions, and turned into buying pressure, which continued to push the price up. So this wave of increase is fast, and I think a large part of the reason is the short squeeze, not that the market suddenly turned bullish.
Some people mentioned that the chip distribution between 72000 and 80000 is relatively thin, which I think is quite critical. The meaning is very simple: once the key position is stabilized, there aren't many sell orders above, and the price can easily surge quickly and fiercely. Because of this, the 72000 position is particularly important now. If it stabilizes, market sentiment will continue to recover. If it doesn't stabilize, it's normal for it to shake you back and forth.
But I also have to pour some cold water on this; it’s not yet time to go crazy without thinking. Because the volatility on the options side hasn’t particularly cooperated, indicating that smarter funds are watching but haven’t completely gotten in. This stage is the most annoying; the market looks strong, but then a pullback comes and washes a bunch of people out, which is really frustrating.
So according to my understanding, the underlying logic of Bitcoin now is still stable, and funds are indeed concentrating in this direction. However, this wave feels more like a repair during a rebound, not a large market where everyone has already turned bullish.
Now I see BTC, just one sentence:
It remains the thing in the market that can accommodate money the best, and that hasn’t changed. However, as long as the incremental funds behind haven't continuously poured in, this market will still be tossed around, ready to kick you at any time.
