If Bitcoin bulls can hold $65,000 it could be the market bottom, yet hedgers are panic buying protection

Bitcoin spent the last two days sliding down familiar shelves, and the order book kept printing lower bids as liquidity thinned.

However, by Wednesday afternoon, the price traded back toward $65,000 after sweeping the low $63,000s, with the last 24 hours spanning roughly $62,800 to $66,200.

The bounce depicts a market that hit the air pocket, found the next ledge, and then checked whether the wrapper still had buyers behind it.

The cleanest signal arrived through U.S. spot Bitcoin ETFs, Tuesday flipped to about $257.7 million of net inflows, led by IBIT at +$78.9 million, FBTC at +$82.8 million, and ARKB at +$71.1 million.

This single green day was extremely important as the market had been conditioning traders to expect leaks, mid February featured a string of red prints on flows, including -$104.9 million on Feb. 17, -$133.3 million on Feb. 18, -$165.8 million on Feb. 19, and -$203.8 million on Feb. 23, which built a simple narrative, sell pressure kept finding an exit through the wrapper.

Tuesday interrupted that pattern, showing the market starting to bid as the ledger tightens.

The options market supplied the other half of the picture, and it arrived with a different tone.

Volatility tilted further toward puts on Deribit, and the 7-day put-call skew moved from -6% to -17% in 24 hours, as traders started paying up for downside coverage even while price climbs back toward the first repair rung.

A market can buy spot and buy protection in the same breath, and that combination turns rebounds into tests of follow-through.

Macro data creates the backdrop, tariffs acted like a volatility lever, and the timing lined up with the flush. Trump introduced new 10% global tariffs effective Feb. 24, with the rate rising to 15% this weekend.

Barron’s framed the move as part of broader risk aversion, which keeps the week’s bounce in context. Liquidity assets tend to trade like mood rings when policy uncertainty widens and spreads.

So the recovery carries a narrow question with a wide shadow: do flows keep arriving while macro volatility cools, or does the market return to defending the lower shelf as the default job?

The answer sits inside a ladder of levels: when bids return with patience, price climbs the repair staircase, when bids fade, price revisits the consequence zone and speeds up.

Bitcoin ETF flows flipped green

Tuesday’s +$257.7 million net inflow landed above the long-run daily average of +$101.8 million, a roughly 2.5x day in terms of magnitude, and IBIT, FBTC, and ARKB carried most of the load.

Concentrated leadership can mean one thing in practice, large allocators use the deepest pipes, and the deepest pipes set the tone for the day.

Still, U.S. spot Bitcoin ETFs sit at around $2.6 billion in net selling year to date, and roughly five straight weeks of outflows totaling around $4.3 billion.

That context turns Tuesday into an early data point inside a larger drawdown story, a single inflow day can mark a turn, and it can also mark a pause; the follow-through decides which interpretation holds weight.

For a price map, the implication stays mechanical, $65,000 remains the first repair rung, and a sustained hold above it sets up the higher rungs at $66,894 and $67,995, the rooms where prior support lives as resistance.

Hedging stays loud, protection gets pricier

The options skew move on Deribit keeps the bounce honest, -6% to -17% over 24 hours is a fast repricing of insurance, and the report described risk appetite deteriorating as spot traded near $62,000.

That combination tells a simple story: the market accepted the bounce, and it also priced the path as unstable, which often leads to rallies that face supply as they approach repair zones.

Deribit’s week 8 report also referenced volatility compression around the 50% area, which matters for scenario framing, a lower vol regime tightens the expected move bands, and tight bands make level interactions more meaningful, each shelf becomes a referendum with sharper consequences for positioning.

Earlier in the month, Kaiko highlighted stablecoin dominance around 10.3% of total crypto market cap, and about $22 billion of net flows into stablecoins over roughly three weeks.

That pool works like cash on the sidelines, it can rotate back into risk, and it can also sit as a sign of caution, a market parking capital while it waits for macro to stop shaking the gears.

This is where the ETF wrapper and the stablecoin pool meet, a sustained ETF inflow streak can represent that rotation, and a fade in flows can represent continued parking.

Tuesday offered a first bid through the wrapper, the coming sessions decide whether that bid grows into a habit.

Bitcoin has fallen from $70,524 to $64,074 over the last three weeks, with an annualized realized volatility estimate around 37%. Pair that with Deribit’s discussion of implied volatility compressing around 50%, and the week ahead looks like a bounded test of shelves rather than a free-fall narrative.

Bitcoin defends key support as bulls attempt to confirm a local bottom

Using a standard volatility model based on how Bitcoin typically trades, with BTC around $65,300, the 7-day expected move (one standard deviation) runs from roughly $60,900 to $69,900. On a 30-day view, that range widens to about $56,500 to $75,300.

Those projected bands align with the liquidity ladder: $61,726 to $61,099 forms the first key decision shelf within the near-term expected move, while $56,048 marks the next rung lower, where price could find acceptance if momentum shifts and sellers regain control.

The market now carries three clean paths, each one ties incentives to observable receipts.

• Repair path: ETF inflows persist, price holds above $65,000, and the tape earns a conversation with $66,894 and $67,995, a slow rebuild powered by wrapper creations and patient spot bids.
• Fade path: Flows revert toward the red streak, skew stays deeply negative, and rallies to meet the $65,000 to $67,000 supply, which pulls price back toward the $61,000 hinge.
• Macro shock path: Tariff uncertainty stays active, spreads widen, liquidity thins, and the market speeds through shelves toward the next acceptance zone near $56,048.

The recovery over the last 24 hours was mechanical: flows finally printed green, hedges priced the downside with urgency, and macro kept pressure on the pipes.

Price reclaimed breathing room toward $65,000, and the market now has a simple job, it has to prove the wrapper can keep absorbing inventory while tariffs keep risk appetite on a shorter leash.

In a channel map, that job stays clear: hold the $61,000 shelf and build acceptance above $65,000.

With that level reclaimed, the repair staircase is back in play, and the market shows its hand at each rung, bids either step in with patience to press the advance, or thin out and force another test of lower support.