Bitcoin Bulls Go Long as BTC Price Enters Recovery Mode After $72K Drop

Key Insights:

• Some Bitcoin whales have moved back into long positions after the drop to $72,000.
• Traders are watching $60,000, $45,000, and $35,000 as possible buying zones.
• BlackRock’s Bitcoin ETF saw a large outflow of more than 7,000 BTC in a single day.

Bitcoin bulls returned to long positions after the recent fall to $72,000, raising hopes of a market recovery. Traders are now watching whale activity, key accumulation zones, and ETF flows after BlackRock’s IBIT recorded its biggest daily outflow since launch.

Bitcoin Whales Shift Back to Long Positions

Bitcoin traders are paying close attention to whale activity after market analyst CW said large holders have moved back into long positions. The change came shortly after Bitcoin dropped toward the $72,000 range, a level that pushed fear across the wider crypto market.

According to the analyst, the next few trading sessions could decide whether the market has already reached a local bottom or if another wave of selling is still ahead. The focus now is on whether whales keep their long exposure open. Large holders often influence short-term market direction because of the size of their positions.

When whales move heavily into shorts, traders usually expect further downside pressure. On the other hand, rising long positions are often seen as a sign that major players expect prices to recover. CW noted that if whales maintain their current stance, the market may be close to ending the latest downtrend.

Bitcoin Whales Going Long | Source: CW

However, a quick return to short positions could signal another sharp decline for Bitcoin. The recent market weakness followed a broader pullback across risk assets. Bitcoin lost momentum after failing to hold above prior resistance levels. This triggered heavy liquidations and weaker sentiment across crypto trading platforms.

Despite the recent pressure, some traders believe the market is beginning to stabilize. Trading activity around support levels has remained active, and long-term holders have largely avoided panic selling during the decline.

Bitcoin Accumulation Zones Draw Attention

Crypto analyst Crypto Patel shared three accumulation zones that he believes could shape the next major Bitcoin rally. His outlook focused on long-term positioning rather than short-term price swings. Patel said his first accumulation zone, around $60,000, has already been filled.

He is now watching the $45,000 area as his next buying level, while also keeping an eye on a possible move toward $35,000. The analyst described the lower levels as opportunities for patient investors rather than reasons for panic.

Bitcoin Accumulation Zone Analysis | Source: Crypto Patel

According to his view, fear has taken over the market after Bitcoin traded around $74,000, but long-term buyers are still preparing for another upward cycle. Patel also repeated his long-term price targets of $200,000, $300,000, and $500,000.

He stressed that those targets are not meant for the near term and should be viewed over a much longer time frame. His comments reflect a wider view among some crypto investors who believe market corrections remain part of Bitcoin’s cycle.

Several traders continue to treat deep pullbacks as accumulation periods ahead of future rallies. At the same time, analysts remain divided on how deep the current correction could become. Some expect Bitcoin to recover gradually from present levels, while others believe another large drop is still possible before the next major rally begins.

BlackRock ETF Outflow Adds Fresh Pressure

The latest pressure on the market also came from spot Bitcoin ETF activity in the United States. Trader T reported that BlackRock’s iShares Bitcoin Trust ETF, known as IBIT, recorded a net outflow of 7,048 Bitcoin worth about $527.82 million on May 27.

The ETF also posted trading volume of roughly $1.5 billion during the session. The withdrawal marked the largest daily outflow for IBIT since the fund launched. As a result, BlackRock’s Bitcoin holdings dropped below 800,000 BTC and now stand at about 794,429 BTC.

Spot Bitcoin ETFs have played a major role in market momentum since their approval earlier this year. Strong inflows previously helped support Bitcoin’s rise to new highs, while weaker demand has recently added pressure during the correction.

Even with the large outflow, market watchers say institutional interest in Bitcoin remains strong overall. However, traders are expected to closely monitor ETF flows in the coming days as the market searches for a clearer direction.

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