Bitcoin Crashed, Flushed Leverage Out. Bottom In?

Bitcoin just tested an intraday low of $61,349, triggered roughly $1.76 billion in liquidations with long positions absorbing more than $1.5 billion of that total, and then bounced toward the mid-$63,000s. Funding rates flipped deeply negative, open interest reset sharply, and the Crypto Fear & Greed Index fell to 12, a level in extreme fear territory. That is a meaningful amount of technical work compressed into a short window, and the buyers who need to absorb the remaining supply have yet to confirm their return.

Market phase | What it means | Current $BTC evidence Liquidation bottom | Forced sellers are flushed out | $1.76B liquidations; $1.5B+ from longs; funding deeply negative; open interest reset Demand bottom | New buyers absorb remaining supply | Not confirmed yet; ETF outflows persist; exchange inflows rose; spot sellers still active

What the crash reset Lacie Zhang, research analyst at Bitget Wallet, argues the technical work from this flush was real. In a note, she said that the $1.76 billion liquidation wave, concentrated in long positions, cleared the most crowded bullish leverage from the order book. Funding rates moving deeply negative indicate that the leverage bias has shifted from overheated longs to defensives, and the sharp open interest reset means speculative positioning is considerably cleaner than it was last week. Zhang also frames the equity comparison, noting that the Dow fell 1.2%, the S&P 500 dropped 0.