The market is once again starting to question whether crypto has already formed a bottom.
From a technical lens, the debate is understandable. Although Bitcoin [BTC] closed Q1 down 22.4%, price action in March showed resilience.
BTC still managed a 1.8% monthly return, and the structure included a strong upside wick up to $76k, suggesting that buyers were still active even during risk-off conditions.
More importantly, Bitcoin’s reaction in the first 24 hours following U.S. President Donald Trump’s ceasefire announcement adds another layer to the current setup.
According to CryptoQuant data, BTC moved back above the Traders’ Lower Realized Price ($69.4k), effectively flipping a key on-chain level from resistance into support after several weeks of repeated rejection.
For context, this metric represents the average cost basis of recent market participants. Naturally, a sustained move back above it is interpreted as a sign of improving market confidence.
Adding to this, Bitcoin’s Coinbase Premium Index also flipped positive following the ceasefire announcement, pointing to stronger demand from US-based investors.
Taken together, Bitcoin’s pre- and post-ceasefire price action is starting to look more constructive.
The logic is simple: the resilience during periods of market FUD is now pushing more investors back into unrealized gains territory, which tends to incentivize HODLing behavior over short-term distribution.
From a technical standpoint, this matters even more. Bitcoin remains over 40% below its $126k peak, meaning a significant portion of market participants are still sitting underwater.
Naturally, the question becomes whether this shift in positioning and sentiment is strong enough to mark a true structural bottom.
Notably, the timing of a recent market event suggests that this scenario may not be far-fetched.
Does a failed Bitcoin short signal strength or just a temporary squeeze?
The market continues to look fragile, even though the recent ceasefire has brought some short-term relief.
In setups like this, even a small FUD-driven catalyst can be enough to trigger panic selling. The recent whale move is a clear example of this dynamic.
A user reportedly identified a Bitcoin whale linked to Eric Trump opening a highly leveraged 40x short position, with a liquidation level positioned around $71.9k.
And yet, the Crypto Fear and Greed Index didn’t flinch. As the chart below shows, the index continues to hover around 45, a “neutral” zone that has historically been linked to accumulation phases.
This setup gains further support from BlackRock adding $269 million worth of BTC inflows and Strategy allocating $72 million.
In short, this successful stress test signals one of the strongest confirmations of Bitcoin’s momentum yet.
