The Bitcoin market has wiped out more than $10 billion in open profits in just two months, and has seen a massive reset leading analysts believe Bitcoin's price recovery is imminent.
On January 17th of Cryptoquant Analyst DarkFost's latest market analysis post X, Bitcoin (BTC) open interest reached a record $33 billion, signaling extreme leverage in the market. However, the political uncertainty linked to former President Donald Trump's recent actions led to a wave of liquidation.
🔍 The $BTC market is deleveraging : A Natural Reset ?
On January 17th, Bitcoin's open interest reached an all-time high of over $33B, indicating that leverage in the market had never been this high.
Following the recent panic triggered by political instability linked to… pic.twitter.com/KPLQ63SHx3
— Darkfost (@Darkfost_Coc) March 16, 2025
Nearly $10 billion of open-in tests then disappeared between February 20th and March 4th. This sudden decline has led to an open interest rate on Bitcoin's 90-day futures -14%, often causing the market to reset before price recovery. Analysts believe that it eliminates excessive speculation, so these stages provide a more stable foundation for future growth.
Bitcoin's long-term outlook remains optimistic despite the decline. According to economist Timothy Peterson, April and October are usually when Bitcoin experiences its biggest seasonal profits. Peterson's latest analysis reveals that Bitcoin could reach a new all-time high by June, with a median target of $126,000.
Furthermore, his “lowest price” model estimates that Bitcoin is unlikely to fall in future trading, indicating that Bitcoin's price floor will rise to $69,000 and hold 95% of the time. Past bull markets have shown that fixes like Bitcoin's recent 30% pullback often precede strong rebounds.
However, not all analysts are completely bullish. Into the Cryptoverse founder Benjamin Cowen warned on a YouTube stream on March 15 that Bitcoin's bull cycle could be at risk if it fell below the 2024 high. Cowen compared the current cycle to 2017, and Bitcoin retested its previous year's highs.
He suggests that if Bitcoin was closed at a low $60,000, the bull market could have ended. Additionally, keeping $70,000 to $73,000 or more will help maintain the market structure, according to Cowen. Bitcoin could signal a lower macro high later in the year if it falls below this level, resulting in a more bearish outlook by the third quarter.
Bitcoin is still in a critical integration phase, with current prices at $82,900 at the time of reporting. If past trends hold, this reset could pave the way for another powerful gathering in the coming months.
