Haciyev Reşit 
Investors’ focus in the cryptocurrency markets has once again shifted to Bitcoin’s price action. Following the sharp sell-off across digital assets, a recent report published by Matrixport suggests that Bitcoin is attempting a short-term recovery that could signal a potential trend reversal. However, analysts caution market participants that this move should not yet be interpreted as the start of a sustained uptrend.
Post-Capitulation Recovery Attempt
According to Matrixport’s analysis, Bitcoin has entered a phase of stabilization after an intense wave of selling often described as “capitulation.” During this period, the liquidation of highly leveraged and fragile positions increased passive selling pressure in the spot market, while forced liquidations in derivatives markets amplified the downward pressure in a cascading manner. Analysts note that this clearing process has helped improve the short-term health of the market structure. The report also emphasizes that short-term technical rebound rallies are common after such sharp declines, but their durability depends on broader market conditions and the demand outlook.
Matrixport highlights that, from a technical perspective, Bitcoin still has room for upside in the short term. Nevertheless, caution is advised regarding the sustainability of this potential move. If price gains remain driven primarily by the closing of short positions or hedging activity by institutions through hedge funds, a lasting recovery may be difficult to achieve. The report underlines the critical importance of fresh capital inflows, noting that without strong institutional and spot demand support, any rebound is likely to remain limited.
Bear Market Rebalancing Phase
Matrixport states that Bitcoin is still undergoing a broader “rebalancing” phase within a bear market. In such periods, sharp relief rallies are normal, but they often struggle to evolve into a sustained trend reversal. Analysts therefore advise investors to avoid excessive optimism and to proceed with caution.
On-chain data further suggests that market conditions remain fragile. Demand momentum appears weak, while structural accumulation is limited. At the same time, increased hedging activity in the options market is contributing to higher volatility. The report also warns that if key support levels in the spot market weaken, prices could quickly retrace, increasing the influence of derivatives markets on Bitcoin’s price formation.
Assessment
According to Matrixport, although Bitcoin is making a short-term attempt at a trend reversal, it is still too early to conclude that the market has entered a clear uptrend. Analysts emphasize that current price movements largely reflect a technical rebound. For a genuine trend reversal to take hold, fresh capital inflows, rising spot market demand, and a clear recovery in on-chain indicators are needed. Otherwise, the ongoing rebounds may remain limited in scope.
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