The crypto market is trying to steady itself after one of the most chaotic weeks of the year – a week that began with U.S. President Donald Trump threatening to impose 100% tariffs on Chinese imports, a move that sent digital assets tumbling across the board.
The selloff briefly pushed Bitcoin to $102,000 and Ethereum to $3,400, wiping out billions in open positions before prices began to rebound over the weekend. Now, new data suggest that the worst of the panic may have passed – and that a rebound could already be underway.
Leverage Washout Creates Buying Window
According to CryptoQuant’s on-chain researcher known as CrazyBlock, a proprietary Binance metric called the Bitcoin Leverage Pulse (BBLP) has flipped into a zone historically linked with accumulation. The indicator, which tracks leveraged positions across Binance’s futures markets, helps assess when traders are overextended – or when fear has cleared them out entirely.
CrazyBlock explained that the BBLP tends to act as a contrarian signal. When it climbs above 1.4, markets often show signs of overheating, and sharp corrections typically follow. But when the ratio falls below 0.8, the opposite occurs: leverage is drained, risk is low, and buyers usually step back in.
The metric currently sits near 0.82, its lowest level in weeks. “Every time the reading has entered this area, Bitcoin has staged a relief rally,” the analyst noted, adding that historical patterns between 2023 and 2025 point to an average 12% recovery in the following 30 days.
A Familiar Cycle for Bitcoin Traders
Before the crash, BBLP had surged past 1.42, warning of excessive leverage and heightened risk. Within hours, that warning materialized as more than $1 billion in long positions were liquidated, triggering one of the fastest drawdowns of the year.
Now, however, the environment looks reset. With speculative positions flushed and funding rates normalized, analysts argue that Bitcoin’s structure resembles the early stages of a new short-term accumulation phase.
Tariffs Spark Fear, but Market Finds Balance
While Trump’s latest trade threat caused the initial shock, the subsequent reaction may have also strengthened the market’s foundation. Reduced leverage often paves the way for healthier price action, and technical indicators like BBLP now suggest a calmer period ahead.
For traders willing to take contrarian bets, this setup might present what CrazyBlock called “a textbook low-risk entry.” Whether Bitcoin follows that historical pattern again remains to be seen – but for now, one of crypto’s most-watched leverage metrics has turned quietly optimistic.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
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Source: https://coindoo.com/analyst-says-bitcoin-just-entered-its-best-buying-zone-in-months/