From a 1.1 Billion Liquidation to a 5% Rebound—Triple Signals of Market Sentiment Reversal

On June 4th, the entire network experienced $1.1 billion in liquidations, and the market was filled with despair. By June 8th, Bitcoin rose over 5% to re-enter the $63,000 level. In just four days, market sentiment shifted from "extreme panic" to "cautious optimism." What happened in between? I found three reversal signals.

First Signal: Funding rates shifted from negative to neutral. After the sharp drop on June 4th, the perpetual contract funding rate for BTC briefly fell to -0.005%, indicating that bears dominated and bulls dared not open positions. By June 7th, the funding rate returned to around 0%, balancing longs and shorts. During the rebound on June 8th, the funding rate slightly turned positive but remained low, showing no new leverage crowding. A healthy funding rate structure is a prerequisite for a sustained rebound.

Second Signal: Exchange-held BTC reserves continued to decline. From June 4th to 8th, net outflows of about 25k BTC occurred on exchanges. This means that during the decline and rebound, whales quietly accumulated coins rather than selling into the rally. Exchange reserves are at a near three-year low, providing solid mid-term bullish confidence.

Third Signal: Stablecoin supply rebounded. The total supply of USDT and USDC increased by about $1 billion on June 8th, returning to pre-crash levels. Stablecoins are the "ammunition" of off-exchange funds; an increase in supply indicates purchasing power is recovering.

These three signals collectively point to a conclusion: the most pessimistic market sentiment has passed. Will the rebound continue? My judgment is: short-term volatility is likely, but a mid-term bottom is forming. The next key resistance is at $65,000; once broken, the rebound will accelerate.

In terms of trading strategy, I plan to do the following: First, hold onto my previous bottom-fishing positions without short-term selling. Second, place small sell orders in the $64,500–$65,000 range to lock in profits while keeping most of my core holdings. Third, if the price retraces to $62,500–$63,000 and does not break below, add to my position with remaining cash. Fourth, avoid opening any new contracts and operate fully with spot holdings.

The rebound has just begun. Don’t worry about missing out due to the recent four-day rally. The market will reward patient investors.

#比特币回升5%
$BTC