Bitcoin (BTC) rebounded above $65,000 on Friday, up 11% from 15-month lows below $60,000, as focus shifted to institutional dip buyers.
Key takeaways:
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Bitcoin finally sees investors who are willing to “buy the dip” as prices dropped to sub-$60,000 levels.
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Traders have shifted their focus to $58,000 as the last line of defense for Bitcoin.
Bitcoin wipes out $1.1 billion longs on drop to $59,000
Bitcoin price fell as low as $60,000 on Thursday, erasing 15 months of bullish gains as investors accumulated more at lower levels.
This extended the drop from its all-time high of $126,000 reached on Oct. 6, 2025, to 50% and was accompanied by massive liquidations across the derivatives market.
Related: Big questions: Should you sell your Bitcoin for nickels for a 43% profit?
Data from monitoring resource CoinGlass showed crypto liquidations over 24 hours nearing $2.6 billion, with longs accounting for $2.15 billion. Bitcoin accounted for $1.1 billion in long liquidations.
Bitcoin dip-buyers finally emerge
Binance’s Secure Asset Fund for Users (SAFU), an insurance fund established by Binance in July 2018 to protect users’ assets, bought another 3,600 BTC worth $250 million at about $65,000 per BTC.
Last week, Binance announced its intention to convert $1 billion SAFU reserves into Bitcoin over the next 30 days.
The first batch of 1,315 BTC, worth about $100 million was bought earlier this week, leaving $565 million more to be converted.
Crypto hedge funds have also been buying the dip, data from Bitwise shows.
The aggregate market beta across all global crypto hedge funds hit its “highest level in 2 years” as Bitcoin weakened, European head of research at Bitwise André Dragosch said in a Friday post on X, adding:
“This signals increasing $BTC market exposure by global crypto hedge funds.”
Dragosch also said that record ETF volumes amid moderate net outflows on Thursday suggested that there “were lots of dip buying” by US-based spot Bitcoin ETFs as well.
200-week MA: Bitcoin’s last line of defense?
BTC touched lows below $60,000, leaving traders to question where Bitcoin was likely to find a bottom.
“$BTC is testing the previous cycle highs, and bouncing slightly so far,” said trader Jelle in a Friday post on X.
According to Jelle, Bitcoin was required to hold a key area of interest between $58,000 and $62,000 to avoid a deeper correction.
“Time to see if we start basing here, or if we just roll over again.”
The $58,000 level coincides with the 200-day SMA, a key support level for BTC price, according to MN Capital founder Michael van de Poppe.
Given that Thursday’s $10,000 drop was the largest volume candle on record, the “assumption can be made that we hit the low there, for now,” van de Poppe said, adding:
“If prices can rally up slightly, we’re going to see a large wick. Like we always see with capitulation events.”
As Cointelegraph reported, Bitcoin’s demand zone now sits above $58,000, supported by historic transaction volume and the 200-week moving average.
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