Bitcoin rebounded to trade around $63,310 on Monday, recovering roughly 4% from a chaotic weekend that saw the cryptocurrency market erase approximately $390 billion in value. The relief rally follows a sharp decline that took Bitcoin to a low of $59,100, a level not seen since early 2023, as the market faced one of its most disorderly trading stretches since the FTX implosion in late 2022. Nearly $7 billion in leveraged positions were liquidated during the sell-off, triggered by macroeconomic data that reduced expectations for Federal Reserve rate cuts.

Macro Triggers and Market Impact

The selling pressure began after May inflation numbers came in warmer than expected, followed by a May jobs report showing the economy added 172,000 new jobs against a consensus forecast of 85,000. The unemployment rate held steady at 4.3%. This data suggested the Federal Reserve would maintain tight monetary policy for longer, negatively impacting assets that had rallied on hopes of easing conditions. Bitcoin broke below $62,000 on Thursday, triggering a cascade of liquidations as margin calls forced the closure of more than $1.5 billion in leveraged positions within 24 hours.

Technical Indicators and Market Sentiment

Technical indicators suggest the market reached oversold conditions during the decline. Bitcoin's 14-day relative strength index (RSI) reached 26.43, below the 30 threshold typically used to define oversold territory. The Fear and Greed Index hit a reading of 8, deep within extreme fear levels. Additionally, Bitcoin briefly broke below its 200-week simple moving average during Friday's sell-off before recovering above it. In February 2026, a similar test of this average preceded a 37% price climb.

Analyst Outlook and Resistance Levels

Trader Scott Melker noted the potential for a bullish RSI divergence on the weekly chart but emphasized that the signal requires a full weekly close with both price and momentum turning upward to confirm. The MACD line remains below its signal line, and the histogram stays negative. The next key resistance for Bitcoin is in the $64,000 to $64,200 range. Analysts caution that while the bounce off the $59,100 floor is positive, the macro conditions that caused the drop have not changed, suggesting that any recovery may face resistance until there is a clear shift in monetary policy expectations.

Bitcoin's plunge below the key $60,000 level last week created significant gains for leveraged inverse ETFs betting against crypto-related stocks. The T-Rex 2X Inverse CRCL Daily Target ETF (CRCD) surged roughly 82%, while the T-Rex 2X Inverse MSTR Daily Target ETF (MSTZ) gained more than 63% as investors hedged against mounting pressure on crypto equities. The rally coincided with one of Bitcoin's sharpest declines this year, as the cryptocurrency fell about 18% and briefly dropped to $59,101 on Friday, marking its first move below $60,000 since late 2024.

Strategy and Circle Decline Drive ETF Gains

The selloff impacted crypto-linked stocks, particularly Strategy Inc (MSTR), which is widely viewed as a leveraged Bitcoin proxy. Strategy came under pressure after disclosing a small Bitcoin sale, its first since 2022. The announcement raised concerns about the durability of the company's buy-and-hold strategy and fueled gains in MSTZ, which seeks to deliver twice the inverse daily performance of Strategy shares.

Similarly, CRCD posted strong returns as shares of Circle Internet Group Inc (CRCL), the issuer of the USDC stablecoin, retreated amid the broader crypto downturn. CRCD is designed to provide twice the inverse daily return of Circle stock. Weakness across digital assets was driven by ETF outflows, geopolitical tensions, and uncertainty surrounding crypto-related companies.

Market Sentiment Remains Fragile

Bitcoin staged a partial rebound on Monday, climbing as much as 3.8% to trade near $62,800 after Strategy Executive Chairman Michael Saylor disclosed a fresh $101 million Bitcoin acquisition. This was its first purchase since selling 32 coins at $77,135 last week, leading to a 6% surge in MSTR stock. However, the recovery has not fully restored investor confidence. Market participants remain cautious after Bitcoin lost roughly half its value from record highs reached last year.

Richard Galvin, executive chairman of crypto investment firm DACM, stated that the firm recently raised cash holdings to their highest level in two years. Apollo Crypto portfolio manager Pratik Kala described market sentiment as "incredibly shaky." As Bitcoin struggles to regain momentum, funds such as CRCD and MSTZ have emerged as standout performers, highlighting a shift toward positioning for further downside in crypto-linked stocks.