Bitcoin (BTC) is rapidly recovering from its $10,000 BTC price drop as wild volatility keeps up pressure on traders.
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Derivatives show BTC price bets are already back
Data from Cointelegraph Markets Pro and TradingView shows BTC/USD clawing back more than half its March 5 losses.
That day saw Bitcoin finally reclaim its all-time highs from November 2021, but whales were lying in wait for late longs on over-leveraged markets.
“There aren’t less people wanting to own bitcoin after this flush,” popular Bitcoin personality Hodlonaut wrote in part of commentary on X.
“This was a case of big whales moving the market like a wave, sending thousands of over-leveraged or under-informed small fish into their mouths.”
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According to data from monitoring resource CoinGlass, the drop, which bottomed near $59,300 on Bitstamp, claimed $1.17 billion in cross-crypto liquidations. The majority of these were longs.
Examining market structure, however, a cathartic effect is visible, with funding rates across exchanges seeing a modest reset from levels that observers argued were unsustainable.
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Open interest tells a similar story, but the latest estimates show this building in line with the BTC price comeback after an initial $3 billion flush.
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Bitcoin order book shows whale move ongoing
On the topic of trader behavior, meanwhile, trading resource Material Indicators is showing whales potentially shifting expectations of what is to come.
Related: Bitcoin analysts say BTC price correction is just ‘healthy consolidation’
A block of bid liquidity on largest global exchange Binance has headed higher, providing what potentially cushioned the correction from $69,000.
“On Feb 28th whales moved $54M in BTC USDT bid liquidity on @binance from the $36k - $38k range and turned it into a buy wall at $52k. FireCharts shows that today they moved more than half ($27M) of that buy wall and converted it into a bid ladder that climbs from $60k - $65k,” Material Indicators wrote in part of accompanying comments, adding:
“Too early to tell if this will be the extent of the pullback (for now), but it’s clear that a large entity either has concern that price won’t dip to $52k, or doesn’t want to allow price to go that low.”
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Elsewhere, a popular comparison to BTC price behavior in late 2020 — when previous all-time highs were broken — continues to circulate.
Then, BTC/USD also saw a snap retracement, spending around two weeks below the new highs before finally breaking out.
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.